Euro (EUR) Enjoys Hawkish ECB Rhetoric
The Euro (EUR) found some success during Tuesday’s trade. European Central Bank (ECB) policymaker Isabel Schnabel said that more interest rate rises were needed, thereby boosting expectations for further action.
However, Russian advances on the Ukrainian battlefield and fears of a further escalation capped EUR’s upside.
Eurozone data is also thin on the ground today. EUR investors may therefore keep a watchful eye on the war in Ukraine, with the common currency potentially suffering if Russia continues to press the attack.
Pound (GBP) Ticks Lower as UK Faces Ongoing Economic Challenges
The Pound (GBP) softened yesterday as business leaders warned about the impact of reduced energy support, which the government will scale back from April.
Additionally, the escalating dispute between public sector unions and the government added to angst about the trajectory of the UK economy. The government published its anti-strike bill, while union leaders are now discussing a coordinated ‘day of action’.
Turning to today, the current lack of UK economic data continues. As a result, domestic news may keep driving GBP. Will more negative headlines put pressure on the Pound?
US Dollar (USD) Muted amid Uneventful Powell Speech
The US Dollar (USD) wavered in a narrow range yesterday, posting meagre gains against its weaker peers. A cautious market mood and an uptick in US Treasury yields lent the safe-haven currency some modest support.
Stifling the US Dollar’s potential was a speech from Federal Reserve Chair Jerome Powell, which disappointed USD bulls in the afternoon. Powell gave no hints about future monetary policy decisions.
Amid a lack of data, risk appetite could be the defining factor for USD exchange rates today.
Canadian Dollar (CAD) Slips in Spite of Tailwinds
The Canadian Dollar (CAD) struggled yesterday, despite an uptick in both Canadian government bond yields and oil prices.
If yields and crude continue to rise today, CAD may be able to recoup some losses.
Australian Dollar (AUD) Climbs on Strong Retail Sales
The Australian Dollar (AUD) moved higher overnight as stronger-than-expected Australian retail sales growth boosted the currency.
New Zealand Dollar (NZD) Wavers amid Tepid Market Mood
The New Zealand Dollar (NZD) moved in a narrow range last night as a mixed market mood left the risk-sensitive ‘Kiwi’ without a clear direction.