Pound (GBP) Volatile following BoE Rate Hike
The Pound (GBP) fluctuated yesterday, moving sideways overall, after the Bank of England (BoE) raised interest rates by 25bps.
Although the bank signalled that this could be the last rate hike, it did not fully rule out another increase in May. This mixed messaging saw Sterling waver, though the Pound avoided any noticeable downside.
A huge jump in UK retail sales has given the Pound a strong boost this morning. Later this morning, the UK PMIs could drive further movement.
Euro (EUR) Softens as Financial Turmoil Hits Consumer Confidence
The Euro (EUR) was initially subdued during yesterday’s trade amid a lack of fundamental drivers of movement through the morning.
In the afternoon, an unexpected drop in Eurozone consumer confidence dented EUR a little. Morale fell for the first time since September after the recent banking sector turmoil spooked consumers.
The Eurozone PMIs are also due out this morning. Could mixed results see the single currency waver?
US Dollar (USD) Struggles to Regain Ground
The safe-haven US Dollar (USD) ticked higher yesterday, recouping some of its post-Federal Reserve losses amid a downbeat market mood.
However, the upside was severely limited as the Fed’s dovish tilt kept a firm lid on the ‘Greenback’.
A modest recovery in US durable goods orders may provide USD with some support at lunch time. Later on, a forecast slowdown in the American private sector may weigh on the ‘Greenback’.
Canadian Dollar (CAD) Enjoys Crude Oil Uptick
Buoyant oil prices lifted the commodity-linked Canadian Dollar (CAD) yesterday. WTI crude climbed by $1 per barrel.
Looking ahead, an expected rise in Canadian retail sales could lift the ‘Loonie’ this afternoon. Commodity market dynamics could also impact CAD.
Australian Dollar (AUD) Muted following Poor PMIs
The Australian Dollar (AUD) remained subdued in overnight trade after Australia’s March PMIs unexpectedly showed a contraction in private sector activity.
New Zealand Dollar (NZD) Softens amid Mild Risk Aversion
The New Zealand Dollar (NZD) also struggled during last night’s session as a cautious market mood dampened the appeal of the risk-sensitive ‘Kiwi’.