Pound (GBP) Firms despite Downbeat Brexit Survey
The Pound (GBP) strengthened yesterday, despite a damning report from the British Chambers of Commerce about the government’s post-Brexit trade deal with the EU.
It seems that Wednesday’s unexpected rise in inflation continued to underpin Sterling, with further Bank of England (BoE) rate hikes looking likely.
Turning to today’s session, UK retail sales exceeded expectations in January, rising by 1.9%. This could boost Sterling.
Euro (EUR) Slides as Russia Reignites Invasion Fears
The Euro (EUR) fell during yesterday’s session as a flare-up of violence in eastern Ukraine weighed on the single currency.
Ukraine and Russia accused one another of an attack, stoking fears that Russia was staging a pretext for war.
The Russia-Ukraine crisis could continue to drive EUR exchange rates today, with developments overshadowing economic data.
US Dollar (USD) Wobbles as Jobless Claims Rise
The US Dollar (USD) was unable to capitalise on the risk-off market mood yesterday, as USD investors seemed hesitant following the disappointing meeting minutes from the Federal Open Market Committee (FOMC).
An unexpected rise in US jobless claims in the afternoon added to USD’s headwinds.
A handful of speeches from Federal Reserve officials today could impact the ‘Greenback’. Will they strike a more hawkish tone than the FOMC meeting minutes did?
Canadian Dollar (CAD) Mixed as Oil Wavers
The commodity-linked Canadian Dollar (CAD) wavered yesterday, trading mostly sideways, as oil prices fluctuated amid the geopolitical uncertainty.
Looking ahead, a forecast contraction in Canadian retail sales in December could dent the ‘Loonie’ this afternoon.
Australian Dollar (AUD) Climbs on Diplomacy Hopes
The Australian Dollar (AUD) jumped higher overnight as hopes of a breakthrough in diplomacy between Russia and the US cheered markets, thereby supporting the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Gains as Market Mood Improves
The New Zealand Dollar (NZD) also strengthened in overnight trade, with the risk-on market mood boosting the ‘Kiwi’.