Pound (GBP) Wavers amid Market Volatility
The Pound (GBP) fluctuated on Friday as the Russia-Ukraine crisis continued to cause volatility.
In addition, better-than-expected UK retail sales data boosted Sterling while fears that the cost-of-living crisis will see sales slump in the coming months offset the upside.
The UK’s flash PMIs for February are out this morning. If they show a continued recovery from Omicron disruption then the Pound could rise.
Euro (EUR) Subdued as Russia-Ukraine Worries Continue
The Euro (EUR) struggled through Friday’s trade as tensions in Ukraine remained high, denting EUR’s appeal.
Leaders in the two Russian-backed separatist regions of eastern Ukraine began evacuating citizens, which some analysts interpreted as a sign that further conflict may be imminent.
The Eurozone’s flash PMIs for February could impact EUR exchange rates today, although any developments in the Russia-Ukraine crisis may overshadow economic data.
US Dollar (USD) Gains on Cautious Trade and Hawkish Fed
The US Dollar (USD) strengthened on Friday as traders bought into the safe-haven currency amid the prevailing risk-off market mood.
Hawkish comments from the Federal Reserve also boosted USD. Fed official John Williams said a rate hike in March was likely, while his colleague Charles Evans said a ‘substantial repositioning’ could be achieved while limiting the risk to jobs.
Risk appetite could continue to drive movement in the ‘Greenback’ today, while another Fed speech in the afternoon may also cause some movement.
Canadian Dollar (CAD) Slips as Retail Sales Contract
The Canadian Dollar (CAD) fell on Friday following Canada’s latest retail sales figures, which revealed a 1.8% contraction in sales in December.
Turning to today, Canada’s latest ADP employment change figures and movements in the oil market could influence the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Rises following Strong PMIs
The Australian Dollar (AUD) climbed overnight after Australia’s flash PMIs for February smashed forecasts.
New Zealand Dollar (NZD) Edges Up on Stronger AUD
The New Zealand Dollar (NZD) also ticked higher in overnight trade as the ‘Kiwi’ enjoyed a risk-on market mood and its positive correlation with the Australian Dollar.