Pound (GBP) Stumbles amid Bleak Economic Forecast
The Pound (GBP) weakened yesterday after accountancy giant KPMG warned that the UK’s economic outlook remains rather bleak.
In its latest report, KPMG said that the UK economy is ‘limping’ and ‘vulnerable to shocks’, which troubled GBP investors.
Sterling is stable this morning but could face fresh pressure after investment firm Pimco said that the UK is at risk of a hard larding and a ‘significant economic deterioration’.
Euro (EUR) Climbs on Hawkish ECB Rhetoric
The Euro (EUR) strengthened through yesterday’s session following hawkish comments from a handful of European Central Bank (ECB) officials.
Multiple rate-setters at the bank pushed back on rate cut speculation, arguing that more needs to be done to return inflation to target.
Later this morning we’ll see the release of the Eurozone’s finalised consumer price index. Confirmation of a sharp slowdown in inflation last month could put some pressure on EUR exchange rates.
US Dollar (USD) Subdued amid Fed Rate Cut Bets
The US Dollar (USD) was muted yesterday as ongoing bets on a Federal Reserve rate cut in March continued to pressure the ‘Greenback’.
A cautious market mood helped to limit USD’s losses, thanks to the currency’s safe-haven status.
Market-moving US data is absent from the calendar today. As a result, risk appetite could drive USD. Could a gloomy mood underpin the US Dollar?
Canadian Dollar (CAD) Unclear as Oil Wavers
The Canadian Dollar (CAD) traded without a clear direction yesterday as wavering oil prices impacted the commodity-linked currency.
Turning to today, the focus for CAD investors is Canada’s latest CPI. If inflation drops further below the Bank of Canada’s (BoC) projections, as expected, rate cut bets could dent the ‘Loonie’.
Australian Dollar (AUD) Firms after RBA Minutes
The Australian Dollar (AUD) edged higher overnight after the Reserve Bank of Australia’s (RBA) latest meeting minutes revealed that policymakers remain focused on fighting inflation.
New Zealand Dollar (NZD) Rises on Positive Trade Data
The New Zealand Dollar (NZD) also rose last night, as an expansion in New Zealand’s exports supported the ‘Kiwi’.