Pound (GBP) Buoyed by UK GDP Report
The Pound (GBP) had mixed success on Friday as better-than-expected UK GDP data offered Sterling some support as the UK economy grew by 7.5% in 2021.
However, GBP slipped against more risk-sensitive currencies amid an improving market mood.
There’s no UK economic data on the calendar for today, so domestic economic news and risk sentiment could drive GBP exchange rates, ahead of the release of the UK’s latest jobs report on Tuesday.
Euro (EUR) Slides on Dovish ECB Comments
The Euro (EUR) fell on Friday as dovish remarks from European Central Bank (ECB) President Christine Lagarde dampened predictions of a sooner-than-expected rate hike.
The safe-haven single currency also found itself under pressure as investors opted for riskier, higher-yielding assets.
EUR may be muted today as investors await another speech from Lagarde. Could more cautious comments push the Euro lower?
US Dollar (USD) Dips amid Risk-On Trade
The US Dollar (USD) suffered a sell-off at the end of last week, as a risk-on mood sapped demand for the safe-haven ‘Greenback’.
Adding to USD’s downside, US consumer confidence unexpectedly slumped to a ten-year low this month.
With no US data out today, risk appetite could exert the most influence over the US Dollar. Fears of imminent Russian military action in Ukraine could see investors favour the safe-haven currency.
Canadian Dollar (CAD) Edges Up as Oil Prices Rise
The oil-sensitive Canadian Dollar (CAD) found some success on Friday as crude prices climbed. However, this wasn’t enough to boost the ‘Loonie’ against its stronger peers.
In the absence of Candian data today, oil prices could continue to influence CAD.
Australian Dollar (AUD) Falls on Russia-Ukraine Fears
The risk-sensitive Australian Dollar (AUD) slipped overnight, as the growing threat of a Russian invasion of Ukraine weighed on the ‘Aussie’.
New Zealand Dollar (NZD) Slips amid Cautious Trade
The New Zealand Dollar (NZD) also stumbled in last night’s risk-off trade, with investors selling the riskier ‘Kiwi’ in favour of safe-haven currencies.