Pound (GBP) Maintains Upward Momentum
The Pound (GBP) continued to creep higher on Thursday, testing key levels of resistance against both the Euro (EUR) and US Dollar (USD).
There was no real catalyst behind Sterling’s continued uptrend, with the currency appearing to simply benefit from the weakness of its peers.
It remains to be seen if GBP will be able to extend its gains into a fourth session today or whether lingering Brexit uncertainty may cap any further upside in the Pound.
Euro (EUR) Bruised by Gloomy Industrial Data
The Euro (EUR) trended lower against the majority of its peers yesterday in response to some weaker-than-expected manufacturing data from the Eurozone.
Eurostat reported industrial production tumbled 2.1% on a monthly basis in December, resulting in an annual decline of 4.1% and stoking speculation the European Central Bank (ECB) may need to pursue some monetary easing in 2020.
For EUR investors the focus today will likely be on the latest economic forecasts from the European Commission (EC) with the Euro likely to weaken if the EC lowers its 2020 growth expectations.
US Dollar (USD) Subdued as Risk Appetite Improves
The US Dollar (USD) was rangebound in the middle of the week as demand for the safe-haven currency was trimmed by optimism that the damage caused by the coronavirus to global growth won’t be too severe.
This comes as the infection rate in China continued to slow on Wednesday, with reports of new cases declining for the second day in a row.
In the spotlight today we have the publication of the latest US consumer price index. Will the US Dollar resume its rally if US inflation is shown to have accelerated again last month?
Canadian Dollar (CAD) Buoyed by Oil Rally
The Canadian Dollar (CAD) firmed on Wednesday, with the oil-sensitive currency benefiting from a robust pick-up in crude prices in response to easing concerns over the coronavirus.
Australian Dollar (AUD) Buoyed by Coronavirus Hopes
The Australian Dollar (AUD) traded higher through yesterday’s session, rising on the back of higher commodity prices and improved risk-appetite as market fears over the coronavirus outbreak began to fade.
New Zealand Dollar (NZD) Soars in Wake of RBNZ Meeting
The New Zealand Dollar (NZD) enjoyed considerable support through the middle of the week, with the ‘Kiwi’ flying high after the Reserve Bank of New Zealand’s (RBNZ) signalled a more hawkish outlook for 2020 than had been expected.