Pound (GBP) Recovers after No Confidence Vote
After slumping just before the European session began, the Pound (GBP) managed to regain its losses.
The recovery came after Boris Johnson narrowly survived a no confidence vote. Investors hope that Johnson’s victory will provide political certainty moving forward. Additionally, an upward revision to the UK’s final services PMI helped Sterling.
Turning to today, there’s a lack of important UK data. As a result, domestic UK headlines may continue to drive the Pound.
Euro (EUR) Falls following Disappointing German Data
The Euro (EUR) slipped against many of its peers yesterday as an unexpected slump in German factory orders worried EUR investors.
Growing tensions between Russia and the West may also have added to the single currency’s downside. The longer Russia’s invasion of Ukraine grinds on, the more it will damage the Eurozone economy.
Later this morning, the third estimate of the Eurozone’s Q1 growth rate could cause some movement. An upward revision would likely boost EUR while a downward revision could dent it.
US Dollar (USD) Wobbles despite Downbeat Mood
The safe-haven US Dollar (USD) was mixed yesterday, wavering despite a rather glum market mood.
A downturn in US Treasury yields may have pressured USD, offsetting the risk-off tailwinds.
With no notable US data due out today, risk sentiment may drive most movement in the US Dollar.
Canadian Dollar (CAD) Firms as Oil Rises
The oil-sensitive Canadian Dollar (CAD) rose yesterday, buoyed by a rise in crude prices.
In the absence of market-moving Canadian data, today CAD could trade primarily on oil price dynamics.
Australian Dollar (AUD) Trims Post-RBA Gains
The Australian Dollar (AUD) slipped overnight, shedding some of yesterday’s gains following the Reserve Bank of Australia’s (RBA) interest rate hike. The movement seems to have been a slight corrective pullback.
New Zealand Dollar (NZD) Slips as Commodities Fall
The New Zealand Dollar (NZD) also declined in overnight trade. The commodity-linked ‘Kiwi’ came under pressure as materials prices fell.