Pound (GBP) Steady on Vaccine Progress
Trade in the Pound (GBP) was stable yesterday as the currency continued to garner support from the success of the UK’s vaccination programme.
However, the upside in Sterling remained limited by concerns that the recent reopening of schools could delay the easing of further lockdown restrictions due to the increased risk of cases rising again.
Looking ahead, the continued absence of any notable GBP data will likely see UK coronavirus statistics remain in focus, potentially leaving the Pound on a flat trajectory at the start of the second half of the week.
Euro (EUR) Subdued ahead of ECB Decision
The Euro (EUR) was mostly rangebound through yesterday’s trading session, with the currency only finding any meaningful gains against the US Dollar (USD).
The muted trade in the Euro came amid the absence of any notable economic data, as well as the reluctance of EUR investors to make any aggressive bets ahead of today’s European Central Bank (ECB) rate decision.
The decision will be in the spotlight today. No policy changes are expected from the ECB this month, but EUR investors will be paying close attention to the bank’s forward guidance for fresh impetus.
US Dollar (USD) Slips as Core CPI Misses
The US Dollar (USD) ticked lower on Wednesday after the latest US consumer price index weakened US Treasury yields.
While headline inflation printed in line with expectations, rising from 1.4% to 1.7% in February, an unexpected drop in core inflation helped to cool concerns that inflationary pressures could be building too quickly.
Turning to today’s session, the focus for USD investors will be on the latest US initial jobless claims. Will a fall in new claims last week help the US Dollar to mount a recovery this afternoon?
Canadian Dollar (CAD) Muted Following BoC Rate Decision
The Canadian Dollar (CAD) was subdued on Wednesday as the Bank of Canada (BoC) concluded its latest policy meeting. While leaving interest rates on hold as expected this month, the BoC warned that the pandemic remains a major risk to the economy.
Australian Dollar (AUD) Strengthens on Domestic Tourism Package
The Australian Dollar (AUD) struck higher overnight on Wednesday, with the ‘Aussie’ attracting bids as the Australian government outlined a AU$1.2bn package aimed at boosting domestic tourism.
New Zealand Dollar (NZD) Rallies in Risk-On Trade
The New Zealand Dollar (NZD) also firmed in overnight trade, with the drop in the US Dollar helping to boost market risk-appetite, which reflected well on the ‘Kiwi’.
Data Releases
12:45 EUR ECB Rate Decision
13:30 USD Initial Jobless Claims (6/Mar)
15:00 USD JOLTs Jobs Openings (Jan)