Pound (GBP) Weakened by Lacklustre Inflation Reading
The Pound ticked lower against many of its peers yesterday in response to an underwhelming consumer price index, which reported domestic inflation unexpectedly slowed to 0.4% last month.
On a more positive note, the UK’s latest PMI figures reported a strong rebound in UK service sector activity this March, with the sector expanding at its fastest pace since October.
Looking ahead, the primary focus for GBP investors will be this evening’s EU summit of leaders, as they wait to see if the EU will block vaccine exports to the UK.
Euro (EUR) Dented by Coronavirus Concerns
The Euro remained on the back foot on Wednesday as concerns over Europe’s coronavirus resurgence continued to weigh on the single currency as cases rise across 19 EU countries.
Fortunately for EUR investors, the Euro was able to minimise its losses with the release of the Eurozone’s latest PMI figures which revealed the bloc’s private sector returned to growth this month thanks to a record surge in manufacturing activity.
Turning to today’s session, the focus for EUR investors is likely to be on the latest EU summit of leaders, in which Europe’s sluggish vaccine rollout is likely to feature prominently.
US Dollar (USD) Extends Rally amid Gloomy Trade
The US Dollar remained on the offensive through yesterday’s trading session, with investors continuing to favour the safe-haven currency amidst the downbeat market mood and hopes for additional US stimulus.
However, these gains were tempered later in the day after data revealed a surprise slump in US durable goods orders in February.
Coming up, will the US Dollar be able to maintain its positive trajectory today on the back of some robust GDP figures, or will another shock rise in jobless claims last week limit the appeal of the ‘Greenback’?
Canadian Dollar (CAD) Firms as Oil Prices Soar
The Canadian Dollar strengthened on Wednesday, with the appeal of the commodity-linked ‘Loonie’ being bolstered as WTI crude prices rebounded nearly 5% to pass $60 a barrel after a blockage in the Suez Canal stocked concerns over disruption to seaborne oil shipments.
Australian Dollar (AUD) Undermined by Risk-Off Mood
The Australian Dollar trended lower overnight on Thursday, with investors steering clear of the ‘Aussie’ as vaccine concerns, US-China tensions and a ballistic missile test by North Korea all dampened market risk appetite.
New Zealand Dollar (NZD) Slips in Jittery Trade
The New Zealand Dollar also fell back in overnight trade, with the downbeat mood and lingering concerns over the government’s new housing measures weighing on the ‘Kiwi’.
11:00 GBP Distributive Trades (Mar)
12:30 USD GDP (Q4)
12:30 USD Initial Jobless Claims (20/Mar)
17:00 EUR EU Summit of Leaders