Pound (GBP) Slips amid Economic Concerns and BoE Remarks
The Pound (GBP) fell yesterday as worries about the economic impacts of Brexit and the cost-of-living crisis weighed on Sterling sentiment.
Comments from the Bank of England (BoE) Chief Economist Huw Pill also seem to have dented the Pound. Pill sought to temper expectations of inevitably aggressive policy action from the BoE, arguing there is significant uncertainty.
Ahead of a speech from BoE Governor Andrew Bailey tonight, domestic political and economic news may drive movement in GBP.
Euro (EUR) Subdued on Mixed German Data
The Euro (EUR) was fairly muted during yesterday’s session following a larger-than-expected drop in Germany’s trade surplus.
The trade data wasn’t all bad though. Both exports and imports unexpectedly increased, with a much sharper rise in imports accounting for the narrowing surplus.
Speeches from two European Central Bank (ECB) policymakers could impact the single currency today. Any hawkish hints will likely boost EUR.
US Dollar (USD) Softens amid Risk-Positive Trade
The US Dollar (USD) stumbled against most of its peers yesterday as a risk-on mood undermined the safe-haven ‘Greenback’.
Additionally, a pullback in US Treasury yields put downward pressure on USD exchange rates.
The US inflation rate for January is out this afternoon, and economists expect it to rise from 7% to 7.3%. A high reading could bolster the US Dollar.
Canadian Dollar (CAD) Edges Higher on Firmer Oil Prices
The commodity-linked Canadian Dollar (CAD) had mixed success yesterday, gaining against its weaker rivals amid a modest uptick in oil prices.
With no Canadian data out today, oil prices may remain the driving factor behind CAD movement.
Australian Dollar (AUD) Hovers Near Weekly Highs
The Australian Dollar (AUD) wavered overnight, but held on to its weekly gains, as a risk-on mood kept the risk-sensitive ‘Aussie’ afloat.
New Zealand Dollar (NZD) Supported by Risk-On Mood
The New Zealand Dollar (NZD) also traded in a narrow range overnight, just shy of the week’s highs. The bullish market mood kept the riskier ‘Kiwi’ holding steady.