Pound (GBP) Drops to New Multi-Month Lows
The risk-sensitive Pound (GBP) tumbled to new multi-month lows on Friday as war-driven risk aversion swept through markets.
Escalations in the Ukraine war rattled markets, with Russian forces shelling Ukraine’s largest nuclear power plant.
As the war continues to rage on, with evacuations halted over the weekend as Russia continued shelling despite a ceasefire agreement, Sterling could remain subdued today.
Euro (EUR) in Freefall as Russian Invasion Grinds On
The Euro (EUR) continued to plummet through Friday’s session amid fears that the war in Ukraine will only become more dangerous and destabilising in the coming weeks.
Poor Eurozone retail sales data added insult to injury, with sales almost stalling in January. Meanwhile, the EUR’s negative correlation to a stronger US Dollar (USD) added to the single currency’s headwinds.
German retail sales and factory orders beat forecasts this morning, which could bolster EUR somewhat. However, headlines from the Ukraine conflict will likely drive most movement in the Euro.
US Dollar (USD) Rises amid Risk-Off Mood
The US Dollar gained ground on Friday as news of increased Russian aggression spooked markets, thereby boosting demand for the safe-haven ‘Greenback’.
USD also enjoyed better-than-expected employment data. Non-farm payrolls printed at 678,000, above forecasts of 400,000, while the unemployment rate dropped to 3.8%, 0.1 percentage points lower than predicted.
With no US data forthcoming today, risk appetite could determine movement in USD.
Canadian Dollar (CAD) Mixed as Oil Holds Steady
The oil-sensitive Canadian Dollar (CAD) edged lower against its stronger rivals on Friday, despite Canada’s Ivey PMI smashing forecasts, as crude prices traded sideways.
Oil prices are likely to drive the ‘Loonie’ today amid an absence of Canadian data.
Australian Dollar (AUD) Firms as Commodities Continue to Rise
The Australian Dollar (AUD) strengthened in overnight trade as rising materials prices continue to underpin the commodity-linked ‘Aussie’.
New Zealand Dollar (NZD) Gains as Materials Prices Rise
The New Zealand Dollar (NZD) also benefitted from increases in the commodities market, which saw the ‘Kiwi’ tick higher overnight.