Pound (GBP) Rebounds on Northern Ireland Hopes
After initially falling, the Pound (GBP) rebounded last Friday amid signs that a key Brexit issue may be nearing a solution.
A meeting between UK PM Rishi Sunak and members of the European Union took place in Northern Ireland. Most parties appeared to leave the meeting hopeful, with Irish Premier Leo Varadkar ‘quietly confident’ a solution was nearing. This optimism brough cheer to GBP investors, following an early day slide.
With little impactful data on the calendar today, GBP could trade on domestic headlines. Further news on the Northern Ireland Protocol could prompt a rally for Sterling.
Euro (EUR) Rangebound despite Hawkish ECB Pushback
The Euro (EUR) saw muted trade at the end of last week, even though hawkish speeches from the European Central Bank (ECB) provided some cushioning.
ECB Policymakers Isabel Schnabel and Francois Villeroy de Galhau both raised their concerns about stick inflation. Schnabel further stated that the ECB needed to ‘act more forcefully’ if the economy’s response was weaker than past efforts.
The Eurozone’s consumer confidence index for February is due to print this afternoon. Will a improving outlook aid the single currency?
US Dollar (USD) Dented by Fed Comments
The US Dollar (USD) fluctuated on Friday. The safe-haven currency was initially bolstered by a souring market mood.
However, the ‘Greenback’ relinquished the bulk of these gains by the end of the session in the wake of some dovish comments from a couple of Federal Reserve policymakers.
Due to data being thin on the ground today, risk appetite could be the main driver for the ‘Greenback’. Should the market mood sour, the safe-haven currency may firm.
Canadian Dollar (CAD) Edges Downward as Oil Prices Slide Further
The oil-linked Canadian Dollar (CAD) continued to struggle on Friday, as crude and brent oil prices fell even further.
Oil is likely to remain the driver of CAD’s movement today, due to an absence of impactful data releases.
Australian Dollar (AUD) Buoyed by China Optimism
The Australian Dollar (AUD) opens this week on strong footing, with optimism over China’s economy reflecting positively on the ‘Aussie’.
New Zealand Dollar (NZD) Muted ahead of RBNZ
The New Zealand Dollar (NZD) is trading in a narrow range so far this week as NZD investors are reluctant to make any bullish bets ahead of the Reserve Bank of New Zealand’s (RBNZ) impending interest rate decision.