UK Economic Outlook Weakens Pound Exchange Rates after Friday’s Poor Retail Data
Friday’s poor retail sales figures were continuing to weigh on the Pound yesterday, with Sterling dragged lower against many of its peers as markets contemplated the gloomy outlook for the UK economy.
Confederation of British Industry (CBI) data today could weaken the Pound, as it is expected to show a slowdown in total orders received by the manufacturing sector last month.
GBP/EUR Sticks around Opening Levels as Eurogroup Holds Two Key Meetings
GBP/EUR was able to hold just below opening levels yesterday, as markets awaited the outcome of two key Eurogroup meetings. Firsty, officials met to discuss the Greek bailout. Secondly, finance ministers from across the Eurozone gave their opinions on who should replace Vitor Constancio as European Central Bank (ECB) Vice-President when he steps down.
The influential ZEW sentiment surveys for Germany and the Eurozone could weaken the Euro today, given that forecasts are for a softening on the previous readings.
Strong Odds of US Rate Hike in March Push GBP/USD Exchange Rates Lower
US markets were closed and the economic data calendar empty for the Presidents’ Day holiday yesterday. GBP/USD slid lower as the US Dollar advanced across the board, supported by odds over 81% that the Federal Reserve will hike interest rates next month.
Pound Sterling to Canadian Dollar Exchange Rate Inches Higher despite Oil Price Rises
The Canadian Dollar was on weak form yesterday against its peers, which allowed Pound Sterling to claw its way to some marginal gains. CAD was weakened by the strengthening US Dollar, even though oil prices were showing solid gains during the day.
December wholesale trade data is the only Canadian ecostat on offer tomorrow.
GBP/AUD Losses Contained as Markets Await RBA Monetary Policy Meeting Accounts
GBP/AUD dipped slightly, although losses were contained by the fact that markets were awaiting this morning’s release of minutes from the Reserve Bank of Australia (RBA) meeting held earlier this month. This was weighing on the Australian Dollar and preventing further strength.
Markets will likely spend the rest of the day reacting to the latest RBA minutes.
Strong US Dollar Helps GBP/NZD Exchange Rates Climb Higher
The New Zealand Dollar was on soft form yesterday in the face of an advancing US Dollar, allowing Pound Sterling to edge higher. There was no economic data to provide support to NZD, so the ‘Kiwi’ weakened against the lacklustre Pound.
The New Zealand Dollar could receive a boost today if the latest Global Dairy Trade auction yields another rise in milk prices.