Pound (GBP) Drops as Brexit Optimism Falters
The Pound (GBP) fell yesterday as hopes of an imminent resolution to the Northern Ireland Protocol dispute faded.
After last week’s reports that the post-Brexit trade dispute could be resolved this week, No. 10 revealed that ‘no deal has been done as yet’. GBP investors seemed disappointed, causing the Pound to slip.
Today’s focus for GBP investors is the latest flash PMI surveys. With the UK expected to remain in contractionary territory, Sterling could stumble.
Euro (EUR) Slips amid Risky Trade and Russia Worries
The safer Euro (EUR) was muted yesterday, as a risk-on mood and Russia-Ukraine tensions kept EUR investors on the defensive.
However, hawkish comments from the European Central Bank’s (ECB) Olli Rehn and another improvement in Eurozone consumer confidence may have limited EUR’s losses.
Looking ahead, forecast improvements in Germany’s ZEW economic sentiment index could boost the single currency today. In the meantime, mixed PMI results may cause some choppy trade.
US Dollar (USD) Muted amid Federal Holiday
With American markets closed for the Presidents’ Day federal holiday, the US Dollar (USD) was subdued yesterday.
A moderately upbeat market mood applied some pressure to the safe-haven ‘Greenback’, while Federal Reserve interest rate rise bets helped to cushion USD’s downside.
Later this afternoon, the US PMIs could impact the American currency. Recent data releases have surprised to the upside. Could stronger-than-expected results boost USD today?
Canadian Dollar (CAD) Directionless amid Mixed Trade
The commodity-linked Canadian Dollar (CAD) traded without a clear trajectory yesterday amid a lack of economic data and fluctuations in the oil market.
Today could bring more mixed movement for the ‘Loonie’. A forecast decline in Canadian inflation may dent CAD, while a recovery in retail sales could support the currency.
Australian Dollar (AUD) Weakens despite RBA Minutes
The risk-sensitive Australian Dollar (AUD) softened overnight, despite hawkish meeting minutes from the Reserve Bank of Australia (RBA), amid a downbeat market mood.
New Zealand Dollar (NZD) Falls amid Cautious Mood
The New Zealand Dollar (NZD) also weakened during overnight trade, with traders shunning the risky ‘Kiwi’ as sentiment soured.