Pound (GBP) Softens as Russian Convoy Approaches Kyiv
The Pound (GBP) trended lower against most of its peers yesterday as Russian forces bore down on Kyiv, with Moscow’s defence ministry urging Ukrainian residents to leave the city.
An upward revision to the UK’s final manufacturing PMI may have cushioned Sterling’s downside, with the report unexpectedly hitting a seven-month high.
With no notable UK data due out today, the Russia-Ukraine war will likely remain the focus for GBP investors.
Euro (EUR) Weakens as Russia-Ukraine War Continues
The Euro (EUR) slid through yesterday’s session as hopes of peace in Ukraine faded.
Russia continued to launch missile and artillery strikes, apparently targeting civilian sites, while a 40-mile-long armoured convoy snaked its way towards Kyiv to lay siege to Ukraine’s capital.
The Eurozone’s inflation figures later this morning is likely to cause less of a stir than it usually would as investors keep their attention on the Russian invasion of Ukraine.
US Dollar (USD) Firms as Risk Appetite Wanes
The safe-haven US Dollar (USD) strengthened during yesterday’s session as risk aversion returned. With Russia seemingly escalating its attacks on Ukraine, and amid warnings of the economic fallout from the conflict, traders offloaded riskier investments in favour of safe havens.
A stronger-than-expected ISM manufacturing PMI in the afternoon also helped to boost the ‘Greenback’.
Risk appetite may continue to influence USD through this morning’s trade. Later this afternoon, investors will look to speeches from Federal Reserve officials and US jobs data to provide fresh impetus.
Canadian Dollar (CAD) Mixed amid Poor Data and Stronger Oil Prices
The oil-sensitive Canadian Dollar (CAD) was mixed yesterday, slipping against its stronger rivals, as poor economic data offset rising crude prices.
Canadian GDP stagnated in December, the manufacturing PMI printed below expectations, and January’s ADP employment change figure unexpectedly slumped by 301,000.
The Bank of Canada’s (BoC) interest rate decision is in the spotlight today. Markets expect a rate rise of 25 basis points, which could boost CAD.
Australian Dollar (AUD) Edges Higher as GDP Beats Forecasts
The Australian Dollar (AUD) initially firmed overnight after Australia’s GDP growth rate exceeded market forecasts. However, a souring market sentiment saw the ‘Aussie’ lose its gains against some of its peers.
New Zealand Dollar (NZD) Capped as Risk Sentiment Fades
Likewise, the New Zealand Dollar (NZD) edged higher in overnight trade before retreating against some of its stronger counterparts as risk appetite faded.