Pound (GBP) Slips in Absence of Data
The Pound (GBP) fell against the majority of its peers on Thursday as a lack of UK economic data left Sterling without much support.
Worrying headlines around the Russia-Ukraine war may have added to the downside, as tensions bubbled over the prospect of Finland and Sweden joining Nato.
There’s no notable UK data due to be published today. As a result, domestic economic news and risk sentiment could drive GBP exchange rates.
Euro (EUR) Plummets after ECB Interest Rate Decision
The Euro (EUR) tanked to multi-year lows on Thursday after the European Central Bank (ECB) struck a downbeat tone in its interest rate decision.
The ECB highlighted that both the downside and upside risks have intensified, increasing concern about the Eurozone’s economic outlook. Amid the uncertainty, policymakers decided to say course, even as other central banks enact 50-bps rate hikes.
A lack of Eurozone data today could leave the Euro to trade primarily on sentiment around the Ukraine crisis. Will conflict intensify in the Donbas region, thereby weighing on EUR?
US Dollar (USD) Climbs on US Retail Sales and Consumer Sentiment
The US Dollar (USD) strengthened on Thursday afternoon thanks to some upbeat US economic data.
US retail sales grew by a strong 0.5% in March, although this was below forecasts. In addition, the preliminary consumer sentiment survey from the University of Michigan smashed forecasts, rising from 59.4 to 65.7.
Turning to today, risk appetite may drive most movement in the safe-haven ‘Greenback’.
Canadian Dollar (CAD) Wobbles as Oil Prices Waver
The Canadian Dollar (CAD) traded without a clear direction on Thursday amid a lack of Canadian data. Oil prices were also wavering, adding to the uncertain movement in the commodity-linked ‘Loonie’.
Canadian data is once again thin on the ground today. Therefore, crude prices could dominate CAD.
Australian Dollar (AUD) Rallies on Hawkish RBA Minutes
The Australian Dollar (AUD) recovered from recent lows overnight as the Reserve Bank of Australia’s (RBA) hawkish meeting minutes gave the ‘Aussie’ a boost.
New Zealand Dollar (NZD) Edges Up on AUD Correlation
The New Zealand Dollar (NZD) inched higher in overnight trade as the ‘Kiwi’ enjoyed a modest lift from its positive correlation with AUD.