The sterling is the most losing currency during today's trading
The pound sterling was on the throne of the losing currencies, while the New Zealand dollar came in second place, and the Canadian dollar came in third place, and more details in the context of the following report:
GBP/USD
The British pound fell during today's trading by 2.10% which affected the trading of the GBP/USD pair, as the GBP/USD pair quickly recovered about 30-35 pips from its daily lows and was last seen trading with modest losses, just below the mid-1.3700s.
The pair extended the previous day's sharp correction decline from the 1.3825-30 resistance area and witnessed heavy selling during the first half of Wednesday's trading. The downtrend drags the GBP/USD pair to its lowest in one week during the mid European session, although it is missing out on selling.
The intraday rebound followed the upbeat economic assessment of British Finance Minister Rishi Sunak during his annual government budget presentation. The Office of Budget Responsibility sees UK GDP to return to its pre-crisis level at the start of the year and expand by 6.5% in 2021, and OBR projections show GDP growth of 6% and CPI of 4% in 2022.
This reinforced market expectations of an imminent rate hike from the BoE at the upcoming policy meeting next week and extended some support to the British Pound. This, along with fresh selling around the US dollar, helped the GBP/USD find suitable support ahead of the 1.3700 mark.
New Zealand Dollar NZD/USD
The New Zealand dollar fell during today's trading by 2.05%, which cast a shadow over the NZD-dollar trading, as the NZD-USD pair was subjected to moderate downward pressure at the beginning of the European session on Wednesday and fell to a daily low of 0.7132 before rebounding, at the time of writing, the pair fell by 0.2% on a daily basis at 0.7155.
Data from New Zealand showed that ANZ business confidence fell to -13.4 in October from -8.6 in September. Additionally, Statistics New Zealand reported that the trade deficit continued to widen in September, and in addition to the disappointing data, a negative turn in market sentiment made it difficult for the risk-sensitive NZD to find demand. Moreover, escalating geopolitical tensions between the US and China appear to have an impact on the pair's business.
On the other hand, the US dollar index remains in a consolidation phase just below 94.00 on Thursday, and the 1% decline in the benchmark US 10-year Treasury yield appears to be limiting the dollar's gains. Later in the session, September's durable goods orders and trade balance data from the US will be looked at for fresh impetus.
Meanwhile, US stock index futures are trading in negative territory, indicating that safe haven flows could begin to dominate financial markets in the second half of the day.
Canadian Dollar CAD/USD
The Canadian dollar fell 1.80% during today's trading, which cast a shadow over the Canadian dollar pair, as the dollar-loonie pair breached the 1.2400 barrier during the early European session and hit near two-week highs in the last hour. The pair was last seen trading around the 1.2415-20 region, up 0.25% for the day.
Crude oil prices fell, reversing overnight gains closer to multi-year highs. This in turn undermined the commodity-linked Canadian dollar and acted as a tailwind for the Canadian dollar. Regardless, the latest phase of the sudden rally in the last hour or so can be attributed to the emergence of some buying around the US Dollar.
Tuesday's upbeat US macro data turned out to be a key factor that extended some support to the dollar amid expectations of early policy tightening by the Federal Reserve. However, the prevailing mood for risk, along with a further decline in US Treasury yields, may limit gains in the safe-haven green currency.