Pound Stumbles Following BoE Rate Decision
GBP exchange rates trended lower through yesterday’s session in response to the Bank of England’s (BoE) latest policy meeting. The Pound Euro exchange rate plunged over half a cent and is struggling this morning.
While this month’s meeting saw the BoE significantly upgrade its growth forecast for 2021 and announce a tapering of its weekly bond purchases, GBP investors were dismayed by the bank’s belief that this ‘should not be interpreted as a change in the stance of monetary policy’.
Looking ahead, the main focus for GBP investors today will be the result of the Scottish election. Will another majority for the pro-independence SNP undermine the Pound?
Euro Rallies on Upbeat Data
The Euro (EUR) started strongly on Thursday after Germany reported a larger-than-expected expansion of factory orders in March.
Accelerating these gains were the Eurozone’s latest retail sales figures, which also printed well above expectations in March.
Turning to today’s session, the Euro looks poised to extend these gains after data revealed a strong rebound in German industrial production figures in March.
US Dollar Slips as Yields Fall
The US Dollar (USD) found itself on the defensive yesterday, undermined by falling US Treasury bonds and dovish Federal Reserve expectations.
This downturn in the ‘Greenback’ came in spite of data showing that initial jobless claims fell to a new post-pandemic low in the US last week.
Coming up, all eyes will be on last month’s non-farm payroll figures today, with the US Dollar poised to jump if the US economy continued to add new jobs at an accelerated pace in April.
Canadian Dollar Buoyed by BoC Speculation
The Canadian Dollar (CAD) maintained an upward trajectory on Thursday, with Bank of Canada (BoC) rate hike speculation offsetting a modest pullback in oil prices.
However, the Canadian Dollar could face some headwinds later this afternoon, amidst forecasts Canada’s latest jobs figures will report a rise in unemployment last month.
Australian Dollar Dented by China Concerns
After initially strengthening in response to surging commodity prices, the Australian Dollar (AUD) trended lower towards the end of today’s Asian session, as the suspension of Chinese-Australian strategic economic dialogue continued to undermine the ‘Aussie’.
New Zealand Dollar Supported by Strong Chinese Trade Figures
The New Zealand Dollar (NZD) held its ground overnight on Thursday, mostly as a result of China’s latest trade figures, which came in well above expectations.
Data Releases
07:00 EUR German Industrial Production (Mar)
11:00 EUR ECB Lagarde Speech
13:30 CAD Unemployment Rate (Apr)
13:30 USD Non-Farm Payrolls (Apr)
15:00 CAD Ivey PMI (Apr)