Pound (GBP) Muted as Correction Continues
The Pound fell back during yesterday’s trading session as the currency continued to suffer a correction after storming higher in recent weeks.
This suggests that the current rally may have run out of steam, with GBP investors consolidating their gains ahead of next week’s Budget, which is likely to trigger some volatility.
In the meantime, we could see the Pound remain subdued through today’s session as the currency remains vulnerable to some end-of-month profit taking.
Euro (EUR) Rallies as Economic Sentiment Beats Expectations
The Euro broke higher yesterday as economic sentiment in the Eurozone showed a sharp improvement this month, rising to its best level since last March.
Aiding the Euro move higher was also the currency’s relationship with the US Dollar, with the negative correlation between the pairing bolstering the single currency on the back of broad USD weakness.
In the absence of any notable Eurozone data releases today, the focus for EUR investors may return to the EU’s vaccination drive, potentially leading to some headwinds for the Euro if concerns over the rollout re-emerge.
US Dollar (USD) Slumps as Risk-On Mood Prevails
The US Dollar found itself on the defensive on Thursday, with investors largely shunning the safe-haven currency amidst an upbeat market mood.
However this downturn in the ‘Greenback’ was tempered by some positive US data releases, with durable goods orders jumping to a six-month low in January and jobless claims falling at a faster-than-expected rate last week.
Turning to today’s session, the US Dollar could rally with the release of the latest US personal spending figures, which are forecast to report a sharp rebound in spending at the start of 2021.
Canadian Dollar (CAD) Firms as Oil Prices Climb to 13-Month High
The Canadian Dollar edged higher again on Thursday, as the appeal of the oil-sensitive ‘Loonie’ was bolstered after WTI crude climbed to $63 a barrel, its highest level in 13 months.
Australian Dollar (AUD) Tumbles as Market Mood Sours
The Australian Dollar dived overnight on Thursday, with investors spurning the high-yield ‘Aussie’ amidst a sudden souring of market risk appetite.
New Zealand Dollar (NZD) Sinks in Gloomy Trade
The New Zealand Dollar largely traded in line with its antipodean cousin, with the risk-sensitive ‘Kiwi’ also giving ground as the market mood deteriorated.
Data Releases
12:30 GBP BoE Ramsden Speech
13:30 USD PCE Price Index (Jan)
13:30 USD Personal Spending (Jan)
15:00 USD Consumer Sentiment Index (Feb)