Pound (GBP) Slips as Russia Moves into Eastern Ukraine
The Pound (GBP) tumbled yesterday amid fears that the Russia-Ukraine crisis could stifle UK GDP growth and push up inflation.
Worries about the UK’s cost-of-living crisis and a relatively dovish speech from Bank of England (BoE) Deputy Governor Dave Ramsden also weighed on Sterling.
However, market volatility saw GBP jump at the end of the session, regaining some of its losses.
A lack of data through most of today’s session could see the Ukraine crisis drive movement in the Pound. Later this evening, BoE policymaker Silvana Tenreyro is due to speak, which could also affect Sterling.
Euro (EUR) Rebounds despite Russian Aggression
The Euro (EUR) managed to recover yesterday after falling overnight in response to the Russian incursion into Ukraine.
The upside came as Germany’s business climate indicator hit a five-month high, smashing forecasts. Meanwhile a weaker US Dollar (USD) helped EUR due to the pair’s negative correlation.
Turning to today, German consumer confidence unexpectedly fell to a ten-month low. This could weigh on EUR.
US Dollar (USD) Stumbles amid Market Volatility
The US Dollar slipped against many of its peers yesterday as developments in the Russia-Ukraine crisis caused some choppy trade.
The safe-haven US Dollar had strengthened overnight after Putin deployed troops into eastern Ukraine. However, risk appetite surprisingly picked up in European trade. This was perhaps due to the relief that the Russian incursion was not a full invasion and the tepid sanction response from Western leaders.
With no market-moving data due out of the US today, the Russia-Ukraine crisis and market risk sentiment could drive USD exchange rates.
Canadian Dollar (CAD) Wobbles as Oil Falls from Seven-Year High
The commodity-linked Canadian Dollar (CAD) was mixed yesterday as crude oil briefly hit a seven-year high before retreating through most of the day’s trade.
Turning to today, a lack of Canadian data may see oil prices continue to drive most movement in the ‘Loonie’.
Australian Dollar (AUD) Firms despite Wage Price Index Miss
The Australian Dollar (AUD) edged higher in overnight trade, despite disappointing wage price data denting Reserve Bank of Australia (RBA) rate hike bets. The upside came as an improving market mood supported the riskier ‘Aussie’.
New Zealand Dollar (NZD) Jumps as RBNZ Raises Rates
The New Zealand Dollar (NZD) climbed to monthly highs overnight after the Reserve Bank of New Zealand (RBNZ) raised interest rates for the third consecutive time.