Pound (GBP) Fluctuates on Mixed Signals from Russia
The Pound (GBP) wavered yesterday as a lack of UK economic data left Sterling without a clear direction.
Additionally, mixed feelings about the situation in Ukraine added to GBP’s volatility. Although the Kremlin said it wants peace, many fear this is simply another smokescreen while the Russian military regroups.
The UK’s final GDP growth rate printed above forecast this morning, providing Sterling with a boost. For the remainder of the day, the Russia-Ukraine war could be the focus.
Euro (EUR) Rises despite Decline in Economic Sentiment
The Euro (EUR) initially dipped yesterday after downbeat comments from European Central Bank (ECB) President Christine Lagarde and a larger-than-expected drop in Eurozone economic sentiment.
The single currency then managed to rebound in the afternoon, despite fading hopes of peace in Ukraine. After Moscow said it would take steps to de-escalate on Tuesday, Russian military attacks continued. Nevertheless, EUR rose in the afternoon.
With the Eurozone unemployment rate, due out later this morning, set to drop for a tenth consecutive month, EUR could continue to find support.
US Dollar (USD) Mixed amid Choppy Trade
The US Dollar (USD) experienced some turbulence yesterday as an uncertain market mood caused some choppy trade for the safe-haven currency.
In addition, mixed economic data added to the choppiness. The US ADP employment change came in marginally above forecasts while the final GDP growth rate printed below previous estimates.
Among a handful of economic events in the data calendar today, one key release is the core PCE price index. As the Federal Reserve’s preferred measure of inflation, the index could boost the likelihood of more muscular action from the US central bank.
Canadian Dollar (CAD) Wavers amid Lack of Data
The Canadian Dollar (CAD) fluctuated yesterday as a lack of Canadian data left the ‘Loonie’ vulnerable to the volatility in the market.
Canada’s latest GDP data this afternoon could provide fresh impetus for CAD investors. Will the Canadian economy have picked up again in January after stagnating in December?
Australian Dollar (AUD) Slips on Poor Chinese PMIs
The Australian Dollar (AUD) fell overnight after China’s latest PMIs signalled declines in both the service and manufacturing sectors. As the ‘Aussie’ is traded as a proxy for the Chinese economy, AUD suffered.
New Zealand Dollar (NZD) Falls amid Risk Aversion
Likewise, the New Zealand Dollar (NZD) headed lower in overnight trade. The poor Chinese data worried investors, thereby dampening the appeal of the risk-sensitive ‘Kiwi’.