Pound (GBP) Firms as Sales Data Beats Forecasts
The Pound (GBP) gained ground yesterday as better-than-expected data from the British Retail Consortium and the Bank of England’s (BoE) rate hike decision last week provided tailwinds for Sterling.
However, ongoing political turbulence capped gains, with Boris Johnson under fresh pressure to apologise for his Keir Starmer smear.
UK economic data is thin on the ground today, so domestic headlines on Boris Johnson’s premiership and Brexit could drive most movement in GBP.
Euro (EUR) Rangebound following Lagarde Comments
The Euro (EUR) traded mostly sideways during yesterday’s session as comments from European Central Bank (ECB) President Christine Lagarde on Monday afternoon tempered the Euro’s post-ECB rally.
Lagarde sounded as though she wanted to rein in rate hike bets, which caused some hesitancy among EUR investors.
Looking ahead, the European Commission’s winter forecasts and a Twitter Q&A from ECB policymaker Isabel Schnabel could impact EUR today.
US Dollar (USD) Mixed amid Tepid Market Mood
The US Dollar (USD) was also rangebound yesterday as a mixed market mood left the safe-haven ‘Greenback’ without a clear direction.
Meanwhile, US Treasury yields continued to rise, limiting the downside potential of the US Dollar
Amid an absence of major market-moving data today, risk appetite could be the driving factor in USD exchange rates.
Canadian Dollar (CAD) Slips as Oil Prices Head Lower
The commodity-linked Canadian Dollar (CAD) fell yesterday as WTI crude dropped below $90 a barrel.
CAD investors may be looking ahead to a speech by Bank of Canada (BoC) Governor Tiff Macklem early this evening. Any hints about the direction of monetary policy could cause movement in the ‘Loonie’.
Australian Dollar (AUD) Boosted by Rising Bond Yields
The Australian Dollar (AUD) firmed overnight as global markets priced in more muscular policy action from central banks, which pushed up local bond yields to three-year highs.
New Zealand Dollar (NZD) Gains as Bond Yields Climb
The New Zealand Dollar (NZD) also gained in overnight as rising New Zealand bond yields boosted the ‘Kiwi’.