Pound (GBP) Fluctuates amid UK Political Uncertainty
The Pound (GBP) was volatile yesterday, ultimately slipping against the majority of its peers, as Sterling sentiment remained mixed.
Political uncertainty pressured the currency as UK Prime Minister Boris Johnson faces renewed calls to resign amid the ‘partygate’ scandal. Meanwhile, a fairly upbeat mood lent the risk-sensitive Pound some support.
Today’s parliamentary vote on whether or not Johnson should be internally investigated could impact the Pound. Additionally, a speech from Bank of England (BoE) policymaker Catherine Mann may cause some movement. Will she remain dovish in the face of soaring inflation?
Euro (EUR) Wavers on Mixed Trade Data
The Euro (EUR) was also choppy yesterday following some mixed Eurozone data. The bloc’s balance of trade massively beat forecasts, printing at €-7.6bn rather than €-29bn. However, the shortfall in trade is still rather alarming as exports are an important part of the Eurozone economy.
Hawkish comments from some European Central Bank (ECB) officials may have helped bolster EUR. But with the bank still lagging behind its global counterparts, the Euro was unable to rise against its stronger peers.
The Eurozone’s flash consumer confidence indicator for April might dent EUR this afternoon. Economists expect consumer morale to drop to a near two-year low.
US Dollar (USD) Slips amid Risk-On Mood and Retreating Treasury Yields
The US Dollar (USD) fell yesterday as a relatively risk-on market mood dampened demand for the safe-haven ‘Greenback’.
Additionally, a pullback in US Treasury yields also put some downward pressure on the US Dollar.
USD could regain some ground this afternoon, however. US jobless claims are forecast to remain near 50-year lows. Meanwhile, Federal Reserve Chair Jerome Powell is due to speak. More hawkish Fed rhetoric could boost the ‘Greenback’.
Canadian Dollar (CAD) Surges on Hot CPI Print
The Canadian Dollar (CAD) soared yesterday after Canada’s latest CPI exceeded forecasts. Canadian inflation jumped by one percentage point to 6.7% – its highest level since January 1991 and well above expectations of 6.1%.
With no Canadian data due out today, movements in the oil market could exert most influence over the crude-linked ‘Loonie’.
Australian Dollar (AUD) Stumbles amid Risk-Off Trade
The Australian Dollar (AUD) wavered lower overnight as a bearish market mood dragged the risk-sensitive ‘Aussie’ lower.
New Zealand Dollar (NZD) Drops as Inflation Disappoints
The New Zealand Dollar (NZD) plunged in overnight trade after New Zealand’s latest inflation rate printed below forecasts. Easing price pressures could result in less aggressive action from the Reserve Bank of New Zealand (RBNZ).