Pound (GBP) Muted on UK Coronavirus Statistics
The Pound lacked any strong directional bias at the end of last week’s session amidst some mixed coronavirus statistics.
While new infections in the UK continue to fall, GBP investors are concerned that there are some signs that the rate of decline is slowing, although not so much as to drive the Pound lower in light of the UK’s ongoing success with its vaccination programme.
Looking to the week ahead, the key focus for GBP investors will be the UK’s latest GDP figures as January’s monthly release will show just how much of an impact the latest lockdown has had on growth.
Euro (EUR) Stymied by USD Strength
The Euro stumbled on Friday as its negative correlation with the US Dollar saw it lose out as the latter rallied.
Helping to temper the single currency’s losses, however, was the latest factory order figures from Germany, which revealed a stronger-than-expected rebound in order growth in January.
However, data published earlier this morning reported that despite the uptick in orders, German industrial production unexpectedly fell over the same period, which sees the Euro open the session on the back foot.
US Dollar (USD) Skyrockets on Stellar Payroll Print
The US Dollar closed last week’s session on a high, with the Dollar index surging to a new 2021 high in response to the latest US non-farm payroll reading, before giving some ground amidst some profit taking.
February’s print showed the US economy added 379,000 jobs, up from an upwardly revised 166,000 at the start of the year and well above forecasts of a modest 182,000 rise.
Looking ahead, the focus for USD investors this week will be on the US consumer price index, where an expected acceleration in inflation could help propel the US Dollar even higher.
Canadian Dollar (CAD) Extends Rally on Oil Surge
The Canadian Dollar (CAD) maintained a positive trajectory on Friday, with the oil-sensitive ‘Loonie’ continuing to catch bids as WTI oil prices stormed above $65 a barrel to a new 14-month high.
Australian Dollar (AUD) Slumps in Early Trade
The Australian Dollar got off to a poor start this week, dipping during Monday’s Asian trading session amid a prevailing risk-off mood, following another jump in US Treasury yields and reports of an attack on Saudi oil facilities.
New Zealand Dollar (NZD) Undermined by Risk-Off Mood
The New Zealand Dollar also opens this week on the back foot, weakening in overnight trade as investors shunned the risk-sensitive ‘Kiwi’ in response to a souring market mood.
Data Releases
07:00 EUR German Industrial Production (Jan)
10:00 GBP BoE Bailey Speech
00:00 AUD Business Confidence (Feb)