Pound (GBP) Wobbles as Market Mood Shifts
The Pound (GBP) wavered yesterday, heading lower against most of its peers, as a lack of UK data left the risk-sensitive Pound at the mercy of a shifting market mood.
News that Turkey would mediate talks between Russia and Ukraine caused a brief moment of relief among investors. However, this was short-lived and Sterling subsequently dropped again.
Risk appetite and the Russia-Ukraine crisis could continue to move the Pound today. Will reports of a slowing Russian advance and civilian evacuations soothe markets somewhat?
Euro (EUR) Moves Higher as Energy Price Pressures Ease
The Euro (EUR) managed to tick higher yesterday, recovering its overnight losses, as a retreat in oil prices relieved pressure on the single currency.
Fears that surging energy prices could cause stagflation, particularly in the Eurozone, have weighed on the Euro recently. Therefore, EUR investors welcomed the pullback in energy-related commodities.
The Russia-Ukraine crisis and its implications for the Eurozone economy could continue to dominate EUR movement during today’s trade.
US Dollar (USD) Climbs amid Risk-Averse Mood
The safe-haven US Dollar (USD) zigzagged higher during yesterday’s session as the market mood remained gloomy, despite a brief moment of brightness.
Friday’s stellar non-farm payroll figures may also have continued to provide a tailwind for USD, particularly ahead of the Federal Reserve rate decision next week.
Turning to today, risk appetite and the latest economic optimism index are both likely to impact the ‘Greenback’.
Canadian Dollar (CAD) Softens as Oils Prices Ease
The commodity-linked Canadian Dollar (CAD) edged lower against many of its peers yesterday after oil prices eased off a 14-year high.
Aside from movements in the oil market, CAD investors will be looking to Canada’s latest balance of trade data for fresh impetus. Could a return to a trade surplus boost the ‘Loonie’?
Australian Dollar (AUD) Slips despite Rise in Business Confidence
The Australian Dollar (AUD) headed lower in overnight trade, despite business confidence unexpectedly jumping to a four-month high. The downside seems to have been due to a correctional pullback after AUD’s impressive rally.
New Zealand Dollar (NZD) Falls as Commodity Rally Fades
The New Zealand Dollar (NZD) also fell overnight as the commodity-fuelled rally in the ‘Kiwi’ lost momentum.