Euro (EUR) Wavers as ECB Indicates Data Driven Forward Guidance
The Euro (EUR) wavered yesterday, as the European Central Bank (ECB) delivered moderately dovish forward guidance.
Following the expected 50bps rate hike, ECB President Christine Lagarde reiterated a need for a data driven approach. The shift comes following the recent turmoil across various banks, both in Europe and elsewhere.
Today, data releases for the Euro are thin on the ground. However, if the final inflation print for the bloc shows a surprise change, it may sway EUR rates.
Pound (GBP) Directionless amid Pared Back Rate Hike Bets
The Pound (GBP) lacked direction on Thursday, as a lack of economic releases left Sterling vulnerable to shifting sentiment.
Yesterday also saw GBP investors readjust their Bank of England (BoE) interest rate expectation, with markets pricing in a fifty-fifty chance of a rate pause.
Today, data releases remain scarce for Sterling. Because of this, external factors may be the core driver of movement for GBP.
US Dollar (USD) Stumbles amid Falling US Bond Yields
The US Dollar (USD) initially rallied yesterday morning, as the safe-haven ‘Greenback’ benefitted from a cautious market mood.
However, the USD then relinquished these gains as US Treasury bond yields began to tick downwards.
This afternoon, the Michigan consumer sentiment data is due to release. March’s index is likely to report an increase, which could bolster the ‘Greenback’.
Canadian Dollar (CAD) Muted as Oil Prices Remain Muted
The Canadian Dollar (CAD) saw muted trade yesterday, as oil prices remained depressed. While they did manage to improve during the day, they remained substantially down on the week.
This afternoon, February’s PPI is due to print. A cooldown is expected, which may weigh on the ‘Loonie’.
Australian Dollar (AUD) Rallies on Bullish Trade
The Australian Dollar (AUD) climbed overnight, as an upbeat market mood saw the risk-sensitive ‘Aussie’ gain ground.
New Zealand Dollar (NZD) Strengthens as Risk Appetite Improves
The New Zealand Dollar (NZD) also saw support in overnight trade, as risk-on trade dominated the session.