Pound (GBP) Leaps as Covid Cases Continue to Fall
The Pound (GBP) jumped yesterday afternoon, following a lacklustre morning, as the UK’s daily Covid cases fell for the seventh consecutive day.
Sterling was initially subdued, despite strong retail sales data, as the UK rejected the EU’s proposed resolutions to the Northern Ireland protocol, raising the spectre of trade conflict between the two sides.
Yet news that daily Covid cases in the UK have fallen for a week cheered GBP investors, causing the Pound to spike.
With no notable data coming out of the UK today, Brexit news could impact the Pound. How will the EU respond to the UK’s stance on the Northern Ireland protocol?
Euro (EUR) Firms as EU Hits Vaccination Target
The Euro (EUR) gained against most of its peers yesterday, as optimism in the EU’s vaccination programme boosted EUR exchange rates.
European Commission president Ursula von der Leyen announced that 70% of adults in the EU had received at least one dose of the Covid vaccine, while 57% are now fully vaccinated. The news raised hopes for the EU’s economic recovery, thereby supporting the single currency.
The Euro may face headwinds this morning as the latest consumer confidence reports from both France and Germany printed below expectations.
US Dollar (USD) Dented by Dip in US Treasury Yields
The US Dollar (USD) fell today, as the US 10-year yield dropped from 1.28% to 1.25% and remained muted throughout the day.
Also weighing on the ‘Greenback’ was the US durable goods orders report, which printed at 0.8%, well below expectations of 2.1%.
With the Federal Reserve’s latest interest rate decision looming, USD investors may be hesitant to place any aggressive bets, which could leave the US Dollar slightly subdued today.
Canadian Dollar (CAD) Dented by Dip in Oil Prices
The Canadian Dollar (CAD) weakened yesterday as a dip in oil prices dented the commodity-linked currency.
CAD investors will be paying attention to Canada’s CPI release this afternoon. With inflation expected to ease, will the Canadian Dollar soften?
Australian Dollar (AUD) Slips on Sydney Lockdown Extension
The Australian Dollar (AUD) trended lower overnight, despite Australian inflation jumping to 3.8%, as the regional lockdown in Sydney was extended.
New Zealand Dollar (NZD) Weakens on Risk-Off Sentiment
The New Zealand Dollar (NZD) also ticked lower in overnight trade, as the risk-sensitive ‘Kiwi’ lost its appeal among a bearish market mood.