Pound (GBP) Rallies amid Hawkish ECB Speech
The Pound (GBP) gained ground yesterday, following a hawkish speech from Bank of England (BoE) Policymaker Catherine Mann.
In her speech, Mann stated that while headline inflation appeared to have peaked, it didn’t show signs of cooldown. As such, she saw room for further rate hikes, prompting an increase in bets from GBP investors.
BoE Chief Economist Huw Pill is due to speak today. Will he echo Mann’s comments and send the Pound even higher?
Euro (EUR) Muted by Retail Sales Miss
The Euro (EUR) saw mixed trade on Monday, following a disappointing showing from December’s retail sales data.
While already forecast to fall, the data showed that monthly sales growth contracted by 2.7%. As such, the single currency struggled to attract support despite the cautious market mood.
A spate of European Central Bank (ECB) policymakers are scheduled to speak today. Could a hawkish stance lift EUR?
US Dollar (USD) Supported by Risk Averse Trade
The US Dollar (USD) strengthened yesterday, as safe-haven flows invigorated the ‘Greenback’ during a tepid market.
Investors were cautious amid rising tensions between America and China following the downing of a reported Chinese spy balloon.
Federal Reserve Chair Jerome Powell is due to speak this evening. If he explores the option of further tightening, USD could strengthen.
Canadian Dollar (CAD) Rises as Canadian Economy Sees Signs of Life
The Canadian Dollar (CAD) rallied on Monday, as the Ivey PMI came in far beyond expectations. Initially forecast to hit 55.2, the index printed at 60.1, showing a healthy level of economic activity.
December’s balance of trade data is due to print today. The Canadian trade deficit is forecast to widen, which could weigh on the ‘Loonie’.
Australian Dollar (AUD) Rises following RBA Hawkish Rate Hike
Overnight, the Australian Dollar strengthened following the Reserve Bank of Australia’s (RBA) interest rate decision. While the 25bps hike was priced in, the RBA’s hawkish forward guidance lifted the ‘Aussie’.
New Zealand Dollar (NZD) Edges Higher on Upbeat Market Mood
The risk-sensitive New Zealand Dollar (NZD) ticked upward overnight, due to an upbeat market mood.