Pound (GBP) Tumbles as Cost-of-Living Squeeze Tightens
The Pound (GBP) fell sharply yesterday as soaring inflation stoked fears over the UK’s cost-of-living crunch.
The Chancellor’s spring statement and the Office for Budget Responsibility’s (OBR) economic forecast failed to allay anxiety. The OBR cut growth forecasts while saying that ‘living standards are set for a historic fall’.
This morning, the UK’s flash PMIs are in focus. Will a drop in business activity see Sterling slip further?
Euro (EUR) Slides as Russian Aggression Continues
The Euro (EUR) dipped against most of its peers yesterday as the mood around the Russia-Ukraine crisis soured. Analysts fear that Russian military tactics in Ukraine are becoming more brutal as the invading army continues to suffer setbacks.
The gloomy mood was evident in European equity markets, with the STOXX 600 falling by 1%.
While the latest flash PMIs could cause some movement this morning, the Russia-Ukraine crisis may remain the main driver of EUR exchange rates.
US Dollar (USD) Struggles despite Risk-Off Mood
The US Dollar (USD) had mixed success yesterday as the gloomy market mood saw the safe-haven currency rise against its weaker peers.
However, the ‘Greenback’ was unable to push its advantage. USD lost some of its limited gains in the afternoon and fell against its stronger rivals.
Economists expect a contraction in US durable goods orders in this afternoon’s data release, which may dent USD.
Canadian Dollar (CAD) Firms as Oil Prices Rise
The Canadian Dollar (CAD) strengthened against many of its counterparts yesterday as rising oil prices boosted the commodity-linked currency.
Amid a lack of Canadian data today, movements in the crude market could continue to influence CAD.
Australian Dollar (AUD) Edges Down from Multi-Month Highs
The Australian Dollar (AUD) eased off multi-month highs overnight, despite stronger-than-expected PMIs and rising commodities prices, as a lack of risk appetite weighed on the ‘Aussie’.
New Zealand Dollar (NZD) Ticks Lower amid Cautious Trade
The New Zealand Dollar (NZD) also retreated from recent highs in overnight trade as the bearish market mood dampened the appeal of the risk-sensitive ‘Kiwi’.