Canadian Dollar (CAD) Rebounds as BoC Hikes Rates
After initially weakening, the Canadian Dollar (CAD) then bounced back yesterday afternoon following a surprise interest rate hike from the Bank of Canada (BoC).
Lingering tailwinds from the BoC’s hawkish surprise could keep CAD afloat today. Additionally, oil price movements could affect the commodity-linked ‘Loonie’. If prices rise the Canadian Dollar could strengthen.
Pound (GBP) Ticks Higher despite Lack of Data
The Pound (GBP) gained ground yesterday, despite thin trading conditions around the UK currency.
Sterling’s strength may have come from renewed Bank of England (BoE) rate hike bets, as investors continue to price in multiple increases from the British central bank.
UK economic data remains in short supply today. Will BoE bets continue to underpin the Pound?
Euro (EUR) Firms amid ECB Rate Rise Hints
The Euro (EUR) shrugged off disappointing German industrial data yesterday and managed to climb against many of its peers.
The upside came as two European Central Bank (ECB) policymakers suggested the ECB would continue to raise interest rates. EUR’s negative correlation to a softer US Dollar (USD) also aided the single currency.
Today, the Eurozone’s third estimate for first-quarter GDP growth is out. Could a deviation from preliminary estimates catch EUR investors off guard?
US Dollar (USD) Slips as Fed Policy Path Uncertain
The US Dollar initially weakened during yesterday’s trade as uncertainty around the Federal Reserve’s future policy plans dampened USD demand.
The ‘Greenback’ did manage to recoup some of its losses later in the session as a risk-off market mood supported the safe-haven currency.
Looking ahead, the latest initial jobless claims figures are the only release of note today. Signs that the labour market remains tight could prompt an uptick in Fed bets, thereby lifting USD.
Australian Dollar (AUD) Rangebound as Trade Data Disappoints
The Australian Dollar (AUD) traded in a tight range last night. While a slight improvement in market mood supported the risk-sensitive currency, disappointing trade data prevented any upside.
New Zealand Dollar (NZD) Edges Up amid Improving Mood
The New Zealand Dollar (NZD) enjoyed the more bullish tone in markets overnight, which helped the risky ‘Kiwi’ regain some of yesterday’s losses.