Pound (GBP) Mixed as ‘Partygate’ Report Remains Unpublished
The Pound (GBP) wavered against safer currencies on Friday but managed to firm against its riskier rivals as poor economic data and simmering geopolitical tensions with Russia sapped market risk appetite.
A lack of UK economic data and hesitancy as the UK awaits the ‘partygate’ inquiry findings added to the mixed movement in the Pound.
With UK data still thin on the ground today, domestic political news could influence the Pound. Will there be any indication when the Sue Gray report could be released?
Euro (EUR) Wavers on Mixed GDP Data
The Euro (EUR) was mixed on Friday following GDP data from some key Eurozone economies. While German GDP contracted by more than expected, Spain and France both printed above forecasts.
EUR did gain against its risk-sensitive peers, however, thanks to its status as a safe-haven currency amid bearish trade.
GDP growth for the Eurozone as a whole is in the spotlight for EUR investors this morning. Economists expect a fourth-quarter slowdown, which could dent the single currency.
US Dollar (USD) Limited despite Risk-Off Mood
The US Dollar (USD) followed a similar trend as EUR and GBP, wavering against these two currencies but advancing on its weaker peers, as a risk-off mood supported the safe-haven currency.
Mixed US data may have limited gains. Headline PCE inflation missed forecasts, while the core rate printed higher than expected. Meanwhile, US consumer sentiment dwindled and wage growth slowed.
Data from Chicago and Dallas could have an impact on USD exchange rates today, as could market mood.
Canadian Dollar (CAD) Subdued amid Lack of Data
The Canadian Dollar (CAD) fell against all but its weakest rivals on Friday as flat oil prices and a lack of Canadian data left the ‘Loonie’ open to losses.
Canada’s PPI report could support CAD this afternoon, as rising price pressures will further increase the likelihood of a rate rise from the Bank of Canada (BoC).
Australian Dollar (AUD) Gains on Brightening Market Mood
The Australian Dollar (AUD) firmed overnight amid an improving market mood ahead of the Reserve Bank of Australia’s (RBA) policy meeting early tomorrow morning.
New Zealand Dollar (NZD) Enjoys Risk-On Trade
The New Zealand Dollar (NZD) also ticked higher in overnight trade as a bullish sentiment boosted the risk-sensitive ‘Kiwi’.