Pound Sterling (GBP)
The Pound drifted lower today following disappointing UK borrowing news.
The government’s public sector borrowing figure has expanded by more than expected in October, increasing from 4.43bn to 7.46bn.
Estimates had been for a 6.6bn reading, so the higher deficit only further complicates tomorrow’s budget announcement.
Sterling could turn volatile later today as traders look to Wednesday’s delivery of the Autumn budget by Chancellor Philip Hammond.
As the German political crisis rumbles on, the Euro has made minor gains against the Pound and US Dollar.
This appreciation follows the news that the Spanish trade deficit has reduced by more than forecast.
The Euro could make greater gains against its regular peers on Wednesday afternoon if the November consumer confidence flash improves as forecast.
Economists had previously expected no change in the -1 point reading, but now a minimal improvement to -0.8 points has been predicted.
US Dollar (USD)
The US Dollar has been relatively weak today, trading in a tight range against the Euro and Pound. Elsewhere, USD has either declined or made minimal gains.
This unimpressive movement comes ahead of a speech tonight from Federal Reserve Chair Janet Yellen.
Yellen will be replaced as Chair in 2018, but for now she still has enough clout to cause US Dollar fluctuations.
Australian Dollar (AUD)
Dovish Reserve Bank of Australia (RBA) minutes weakened the Australian Dollar overnight.
The RBA minutes show increasing uncertainty among policymakers about the path of wage growth.
The Australian Dollar could drop again when tonight’s construction output report is published. Forecasts are for a -2.1% decline in Q3.
New Zealand Dollar (NZD)
The New Zealand Dollar has been one of today’s currency losers, having recorded minor losses against most of its regular peers.
NZ economic issues have focused on a potential oversupply of dairy products, a situation which could lead to lower prices and have a negative impact on NZ dairy exporters.
These fears will be put to the test this afternoon, when Global Dairy Trade price index stats come out.
Dairy prices previously fell by -3.5%, so another drop might lead to NZD losses.
Canadian Dollar (CAD)
A sudden upturn in crude oil prices have seen the Canadian Dollar post mixed movement today.
CAD has seen fractional gains against the Euro today, but has otherwise fluctuated against its other usual rivals.
The Canadian Dollar might see more solid gains on this afternoon’s wholesale sales figures, which are tipped to show a rise from 0.5% to 0.6%.
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