Euro (EUR) Slides amid Russia-Ukraine Concerns
Worries about an escalation in the Russia-Ukraine conflict pushed the Euro (EUR) lower at the end of last week. Russia launched a ‘massive’ wave of missile strikes, with one missile almost passing through the airspace of Romania – a NATO member.
Later in the afternoon, the single currency was able to recoup some losses off the back of hawkish comments from European Central Bank (ECB) policymaker Isabel Schnabel. The German economist voiced her support for more interest rate rises.
With no Eurozone data due out today, Russia-Ukraine news could continue to drive EUR exchange rate movement.
Pound (GBP) Ticks Higher as UK Avoids Recession
The Pound (GBP) enjoyed an initial upside on Friday after the UK’s latest GDP data revealed that the country avoided a recession at the end of last year.
However, the report did outline some ‘worrying developments’, as the economy continues to face high inflation, rising interest rates, and a decline in trade. As a result, Sterling struggled against its stronger peers.
This week, we have two high-impact data releases early on. Tuesday brings the latest labour market report, with the January inflation rate hot on its heels on Wednesday. As a result, GBP exchange rates could witness some big swings.
US Dollar (USD) Finds Support following Consumer Sentiment
The US Dollar (USD) initially traded without a clear direction on Friday as a shifting market mood sparked some volatility in the safe-haven ‘Greenback’.
A larger-than-forecast rise in US consumer morale lifted USD in the afternoon. The University of Michigan consumer sentiment score rose from 64.9 to 66.4, rather than the forecast 65.
This afternoon, Federal Reserve rate rise expectations could impact the US Dollar. Hawkish Fed board member Michelle Bowman is due to speak. USD could climb if she advocates more rate hikes.
Canadian Dollar (CAD) Soars on Strong Employment Data
The Canadian Dollar (CAD) surged higher at the end of last week’s trade. A jump in oil prices lifted the commodity-linked ‘Loonie’, while surprisingly strong employment data also boosted CAD.
A lack of Canadian economic data today may mean that the ‘Loonie’ moves in relation to oil price dynamics.
Australian Dollar (AUD) Flat amid Thin Trading Conditions
The risk-sensitive Australian Dollar (AUD) traded narrowly overnight amid a lack of Australian data and a mixed market mood.
New Zealand Dollar (NZD) Buoyed by Upbeat Data
The New Zealand Dollar (NZD) climbed in overnight trade, with a stronger-than-forecast recovery in the country’s services sector activity providing the ‘Kiwi’ with support.