Pound (GBP) See-saws amid Lack of Data
The Pound (GBP) fluctuated yesterday as a lack of UK data left Sterling without a clear direction.
A shifting market mood added to the risk-sensitive Pound’s instability. GBP initially rose but sentiment soured in the afternoon, pulling the Pound lower.
UK data is still thin on the ground today so Sterling may trade on domestic UK news. With the country facing a cost-of-living crisis and the return of the ‘partygate’ scandal, there may be headwinds in store for the Pound.
Euro (EUR) Recovers as Macron Leads the Polls
The Euro (EUR) rose during yesterday’s European session, recovering its overnight losses, despite a downbeat mood around the Ukraine crisis and a lack of data.
The latest polls in the French presidential election may have given EUR a boost. Emmanuel Macron seems to have consolidated his lead over far-right rival Marine Le Pen. As France’s current, pro-EU President, Macron would offer political stability if he were re-elected, which may have cheered EUR investors.
The Euro may face some headwinds this morning as economists expect the Eurozone’s trade deficit to have widened once again.
US Dollar (USD) Fluctuates amid Shifting Market Mood
The US Dollar (USD) wobbled yesterday as a lack of notable US data and a changing market mood caused some turbulence for the safe-haven ‘Greenback’.
However, expectations of hawkish action from the Federal Reserve continue to underpin USD, which kept it afloat against the majority of its peers.
Risk sentiment could drive most movement in USD through the first part of today’s session, while Fed speakers may affect the currency in the afternoon.
Canadian Dollar (CAD) Softens as Oil Prices Slip
The commodity-linked Canadian Dollar (CAD) stumbled yesterday as oil prices fell. WTI crude dropped by around $6 per barrel, dragging CAD down with it.
Canada’s inflation rate is in the spotlight for CAD investors today. Will a high reading boost the ‘Loonie’?
Australian Dollar (AUD) Rallies as Shanghai Lockdown Eases
The China-proxy Australian Dollar (AUD) staged a comeback overnight as lockdown restrictions in Shanghai eased, with some factories set to restart production.
New Zealand Dollar (NZD) Firms on AUD Correlation
The New Zealand Dollar (NZD) also gained in overnight trade, with the ‘Kiwi’ enjoying its positive correlation with the ‘Aussie’.