Pound (GBP) Battered by Economic Headwinds
The Pound (GBP) slipped through Friday’s session as UK travel chaos added to the UK’s economic headwinds. Amid severe staff shortages, airlines cancelled hundreds of flights. Meanwhile, traffic was gridlocked on the way to Dover.
In addition, YouGov’s latest household finance survey tumbled to a ten-year low for the second month running. Both the cost-of-living crisis and the war in Ukraine have hammered UK consumer confidence.
Sterling faces further challenges today after UK GDP data missed forecasts. In February, GDP growth slowed to 0.1%, below expectations of 0.3%.
Euro (EUR) Wobbles on Mixed Ukraine Sentiment
The Euro (EUR) wavered on Friday, edging higher on its weaker rivals, amid mixed news from Ukraine.
As Russian forces pulled back from Kyiv, some displaced Ukrainians began returning home. However, analysts expect the Kremlin to intensify its attacks in eastern Ukraine, and a Russian missile strike on a train station killed at least 52 civilians.
With no notable data from the Eurozone today, EUR may continue to trade on news from the Ukraine crisis.
US Dollar (USD) Consolidates Gains on Hawkish Fed
The US Dollar (USD) fluctuated in a narrow range on Friday, heading sideways overall, consolidating the week’s gains.
Hawkish expectations from the Federal Reserve and a risk-off market mood underpinned the safe-haven currency. However, these factors were already largely priced in, keeping USD fairly rangebound.
More Fed speeches may cause some movement today, while risk appetite could also continue to affect the ‘Greenback’.
Canadian Dollar (CAD) Rises as Unemployment Rate Hits Record Low
The Canadian Dollar (CAD) firmed on Friday as Canada’s unemployment rate dropped from 5.5% to 5.3% – the lowest rate on record.
The oil-sensitive currency finds itself under pressure this morning, however, as crude prices slide.
Australian Dollar (AUD) Falls following China CPI
The Australian Dollar (AUD) softened overnight as China’s higher-than-expected inflation rate reading dented hopes for a more favourable policy approach from the People’s Bank of China (PBoC). This, in turn, weighed on the China-proxy ‘Aussie’ Dollar.
New Zealand Dollar (NZD) Stumbles on Credit Card Spending Miss
The New Zealand Dollar (NZD) also dipped in overnight trade amid an unexpected decline in credit card spending. However, the ‘Kiwi’ was able to recoup some losses as the European session approached.