Pound (GBP) Mixed in the Wake of BoE Rate Hike
The Pound (GBP) had mixed success during Friday’s session, beating its riskier rivals but losing ground elsewhere as a bearish mood swept markets.
The aftermath of the Bank of England (BoE) rate rise added to the ambivalence around Sterling. While hawkish intentions from the BoE provided a boost, concerns over the UK’s cost-of-living crisis offset the upside.
With no UK data due out today, domestic news about the UK’s economy and politics could weigh on GBP exchange rates.
Euro (EUR) Extends Post-ECB Rally
The Euro (EUR) strengthened against the majority of its peers on Friday as the hawkish shift from the European Central Bank (ECB) on Thursday continued to act as a tailwind.
Better-than-expected German data and a risk-off mood also buoyed the safe-haven Euro, while a contraction in Eurozone retail sales may have limited the upside.
A speech from ECB President Christine Lagarde this afternoon could affect EUR. Will she seek to quell rate hike expectations or could her comments further boost the single currency?
US Dollar (USD) Recovers amid Risk-Off Mood
The US Dollar (USD) rallied on Friday as a waning appetite for risk saw investors flock to the safe-haven currency.
A strong non-farm payrolls report also boosted USD, with the US economy adding 467,000 jobs in January versus the expected 150,000.
A lack of US data releases today could mean that risk sentiment is the defining factor in USD exchange rates.
Canadian Dollar (CAD) Dips on Worrying Jobs Data
The Canadian Dollar (CAD) fell against many of its peers on Friday following some dire Canadian employment data.
However, rising crude prices offset the downside, allowing the oil-linked ‘Loonie’ to gain on its weaker rivals.
In the absence of Canadian economic data today, oil prices could continue to influence CAD.
Australian Dollar (AUD) Grinds Higher on Mixed Data
The Australian Dollar (AUD) edged higher overnight amid mixed economic data. While the Ai group services index beat forecasts by over ten points, the latest Australian retail sales data confirmed a 4.4% contraction in December.
New Zealand Dollar (NZD) Firms on AUD Strength
The New Zealand Dollar (NZD) also ticked higher in overnight trade, boosted by its positive correlation to the ‘Aussie’ and a slight improvement in market mood.