Pound US Dollar Dips as Boris Johnson Stresses Cautious Lockdown Easing
The Pound US Dollar exchange rate ticked lower on Wednesday, although GBP/EUR held its ground following comments from UK Prime Minister Boris Johnson.
Johnson said he agreed with a ‘data not dates’ approach to easing the lockdown, tempering hopes for a swift reopening of the UK economy over the next couple of months.
This offset the publication of the UK’s consumer price index, which may have otherwise supported Sterling following a surprise acceleration of domestic inflation last month.
Looking ahead, GBP investors will be looking for any additional hints regarding the UK government’s approach to easing the lockdown, ahead of the unveiling of Johnson’s roadmap next week.
The Pound US Dollar exchange has recovered ground this morning, rising back above $1.39. And the GBP/EUR exchange rate is on a positive footing above €1.15.
Euro Dented by Vaccine Concerns
The Euro (EUR) was on the defensive through yesterday’s trading session, with the single currency continuing to run afoul of its negative correlation with the US Dollar (USD).
On top of this, the appeal of the Euro also continued to be dampened by the EU’s slow vaccine rollout, which remains a key concern for EUR investors
Coming up, the Euro could face additional pressure later this afternoon as the Eurozone’s latest consumer confidence index is expected to report the mood remained gloomy in February.
US Dollar Rallies on Upbeat Retail Sales
The US Dollar (USD) continued to punch higher yesterday, with the currency receiving another leg up from some upbeat US data releases.
US retail sales and industrial production printed above expectations in January, which alongside another jump in US Treasury yields offered plenty of support to the US Dollar during yesterday’s European trading session.
Turning to today’s session, the focus will be on the latest US initial jobless claims. Will another disappointing rise in new claims curb the US Dollar’s recent momentum?
Canadian Dollar Buoyed as Inflation Prints Above Expectations
The Canadian Dollar (CAD) enjoyed some modest gains on Wednesday as the currency was buoyed by a surprisingly strong uptick in domestic inflation, although ‘Loonie’ gains were tempered somewhat as oil prices stalled below $60 a barrel.
Australian Dollar Struggles despite Upbeat Employment Figures
The Australian Dollar (AUD) struggled to garner support overnight on Wednesday, with a faster-than-expected fall in domestic unemployment failing to attract investors amidst the US Dollar’s current bullish run.
New Zealand Dollar Muted amid Lacklustre Risk Appetite
The New Zealand Dollar (NZD) also drifted lower in overnight trade as the continued appreciation of the US Dollar dampened market risk appetite.