Pound (GBP) Stumbles in spite of Upbeat Employment Figures
The Pound ticked lower through yesterday’s session, as GBP investors appeared to shrug off the publication of the UK’s latest jobs report despite it showing that domestic unemployment unexpectedly fell to a three-month low of 4.9% in February.
This pullback in Sterling was attributed to modest profit taking in the currency after the Pound US Dollar exchange rate had passed a key barrier of resistance, $1.40, at the start of Tuesday’s European trading session.
Meanwhile, the Pound may attempt to rally again today after data published earlier this morning confirmed that domestic inflation rebounded in March.
Euro (EUR) Flat amid USD Rebound
The Euro was mostly flat on Tuesday, as a revival of the US Dollar dampened demand for the single currency.
Supporting the Euro, meanwhile, was the European Medicines Agency’s (EMA) verdict on the Johnson and Johnson vaccine, in which it suggested that the benefits outweigh the risks.
Looking ahead, it’s likely the Euro will continue to trend narrowly today as EUR investors brace for the European Central Bank’s (ECB) policy meeting on Thursday.
US Dollar (USD) Stabilises as Risk Sentiment Deteriorates
After falling sharply at the start of the week, the US Dollar was able to find its footing yesterday, amidst a weakening of market risk appetite.
Helping the US Dollar to hold its ground on Tuesday was also a modest pickup in US Treasury yields, although these still remained below their recent 14-month high.
Looking ahead, with US economic data still thin on the ground today, USD investors are likely to remain focused on yields and global economic sentiment for fresh impetus in the US Dollar.
Canadian Dollar (CAD) Muted Ahead of BoC Rate Decision
The Canadian Dollar was mostly rangebound through Tuesday’s trading session as CAD investors were content to remain on the side lines ahead of the Bank of Canada’s (BoC) rate decision later this afternoon.
No policy changes are expected from the BoC this month, but the bank may be a little more cautious in its outlook in light of Canada’s recent coronavirus surge.
Australian Dollar (AUD) Firms on Upbeat Retail Sales Figures
The Australian Dollar ticked higher overnight on Tuesday in the wake of Australia’s latest retail sales figures, which revealed a sharper-than-expected 1.4% acceleration of sales growth last month.
New Zealand Dollar (NZD) Rallies as Inflation Beats Expectations
The New Zealand Dollar struck higher in overnight trade as NZD investors welcomed the publication of New Zealand’s latest CPI figures after inflation accelerated faster than expected in the first quarter of 2021.
07:00 GBP Inflation Rate (Mar)
11:30 GBP BoE Bailey Speech
13:30 CAD Inflation Rate (Mar)
13:30 CAD BoC Rate Decision