Pound (GBP) Rallies as Sunak Seals Northern Ireland Deal
The Pound (GBP) rallied yesterday, as PM Rishi Sunak managed to close a deal on the Northern Ireland Protocol.
Dubbed the ‘Windsor Framework’, Sunak may have managed to avoid further trade tensions between Europe and the UK, much to the relief of GBP investors.
Today, further news on the deal may keep Sterling upbeat, in lieu of any impactful economic data releases.
Euro (EUR) Muted amid Inflation Concerns
The Euro (EUR) traded a narrow range on Monday, following the publication of the Eurozone’s economic sentiment index for February.
The index slipped 99.9 to 99.7, missing forecasts for a rise above the longer-term average to 101. The decline was linked to concerns over high inflation, with the single currency weakening as analysts warned the data may point to a stagnation of Eurozone growth in the first quarter.
In the absence of impactful data, news regarding the Ukraine-Russia war is likely to be investor’s focus today. Any signs of an escalation could weigh on the common currency.
US Dollar (USD) Dented by Dismal Durable Goods Orders
The US Dollar (USD) weakened yesterday, following miserable durable goods orders data. January’s data showed a 4.5% decline in monthly orders, versus the expected 4% fall.
Furthermore, a mixed market mood kept the safe-haven ‘Greenback’ on the defensive during Monday’s session. A slide in the Dallas Fed manufacturing index to -13.5 may have further weakened USD.
This afternoon, an uptick in February’s consumer confidence index may bring support to the ‘Greenback’, as might a prevailing risk-off mood.
Canadian Dollar (CAD) Strengthened by Robust Oil Prices
The Canadian Dollar (CAD) strengthened yesterday, the commodity-linked currency being supported by strong oil prices.
This afternoon, Canada’s Q4 GDP data is due to print. The economy is forecast to have slowed from 0.7% to 0.4%, which may weigh on the ‘Loonie’.
Australian Dollar (AUD) Weakened by Cautious Market Mood
The Australian Dollar (AUD) weakened overnight, as a downbeat market mood limited demand for the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Falls on Souring Market Mood
The risk-sensitive New Zealand Dollar (NZD) also fell overnight on Monday as the appeal of the ‘Kiwi’ was sapped by a cautious mood.