Euro (EUR) Trims Gains following Putin Warning
The Euro (EUR) enjoyed early success yesterday after German industrial production and Eurozone GDP growth both exceeded forecasts.
Comments from Russian President Vladimir Putin dented support for the single currency in the afternoon. Putin said that the war in Ukraine could be a ‘long process’ and that Russia would ‘defend ourselves with all the means at our disposal’.
Looking ahead, EUR investors will be closely watching a speech from European Central Bank (ECB) President Christine Lagarde. The common currency could slip if the ECB chief strikes a dovish tone.
Pound (GBP) Rises amid News of UK-US Gas Deal
The Pound (GBP) ticked higher against many of its peers yesterday, perhaps boosted by news of a UK-US gas deal that could help protect Britain from supply and price shocks in 2023.
However, Sterling found its gains limited in the afternoon as concerns about the UK’s struggling economy tempered investor optimism.
This week’s scarcity of UK data continues today. As a result, Sterling could trade without a clear directional bias.
US Dollar (USD) Dips in Tandem with Treasury Yields
The US Dollar (USD) declined yesterday as a drop in US Treasury yields sapped demand for the ‘Greenback’.
As the session went on the increasingly cautious market mood eventually helped the safe-haven US Dollar recover some ground. However, USD remained down on the day.
The latest initial jobless claims data could impact USD. A bigger-than-expected rise or fall could hurt or support the ‘Greenback’, respectively. In the meantime, risk appetite could drive US Dollar movement.
Canadian Dollar (CAD) Downside Offset by BoC Rate Rise
The oil-sensitive Canadian Dollar (CAD) faced some selling pressure yesterday as crude prices continued to soften. However, a 50bps interest rate rise from the Bank of Canada (BoC) helped CAD recoup some losses.
Amid a lack of Canadian data today, fluctuations in the price of crude could impact the ‘Loonie’.
Australian Dollar (AUD) Rangebound amid Tepid Market Sentiment
The Australian Dollar (AUD) moved sideways overnight as a mixed market mood and an unimpactful bulletin from the Reserve Bank of Australia (RBA) left the ‘Aussie’ to trade without a clear direction.
New Zealand Dollar (NZD) Wobbles during Risk-Neutral Trade
The New Zealand Dollar (NZD) wavered in a narrow range last night, with the neutral mood among investors dampening movement for the risk-sensitive ‘Kiwi’.