Euro (EUR) Nosedives following Dovish ECB Hike
The Euro (EUR) plummeted yesterday after the European Central Bank (ECB) raised interest rates but hinted that this hike may be its last.
In an accompanying statement, the ECB said that policymakers believe current rates have reached sufficiently restrictive levels, indicating that the bank is done tightening.
This morning, ECB President Christine Lagarde is due to speak. Could her comments move the needle on EUR? Or will expectations of an end to tightening keep the Euro subdued?
Pound (GBP) Slides amid Ongoing Economic Woes
The Pound (GBP) slumped yesterday amid growing fears that the UK economy is heading for a recession.
A recent raft of downbeat economic data, including Wednesday’s larger-than-forecast contraction in GDP, has sparked anxiety around the UK’s outlook.
Turning to today, the Pound ends the week amid a lack of data. As recession fears continue to swirl, Sterling may remain on the back foot.
US Dollar (USD) Boosted by Strong Data Releases
The US Dollar (USD) firmed yesterday after strong American economic data boosted Federal Reserve rate hike bets.
Both producer price inflation and retail sales growth unexpectedly accelerated, suggesting ongoing demand in the US economy. Meanwhile, initial jobless claims remained low, indicating that the labour market is still running hot.
Coming up, the latest US industrial production figures and consumer sentiment data are due out. Could they also exceed expectations and see USD surge?
Canadian Dollar (CAD) Buoyed by Oil Prices
The Canadian Dollar (CAD) climbed higher yesterday as oil prices continued to rise, lifting the commodity-linked ‘Loonie’.
CAD data remains in short supply today. If oil extends its upward march, the Canadian Dollar could gain further ground.
Australian Dollar (AUD) Surges following Strong Chinese Data
The risk-sensitive Australian Dollar (AUD) strengthened last night, hitting a ten-day high against USD and a six-week high against GBP, after upbeat Chinese economic data cheered markets.
New Zealand Dollar (NZD) Marches Higher amid Upbeat Mood
The New Zealand Dollar (NZD) also rallied strongly last night, with the risk-on impulse in markets boosting the currency’s appeal.