Pound (GBP) rises despite recession concerns
The Pound (GBP) ticked higher as this week’s session began, despite fears that the UK economy may have slipped into a recession at the end of 2023.
While forecasters at the EY Item Club said it was likely that UK GDP shrank in the final three months of 2023, they were more upbeat about the economic outlook over the next two years.
Turning to today, lower government debt payments have fuelled hopes of spring tax cuts, which could help to spur growth in the UK economy. This optimistic outlook could lend GBP support.
Euro (EUR) slips ahead of ECB decision
The Euro (EUR) softened yesterday as a lack of economic data left the single currency struggling to attract support.
Investors also seemed reluctant to bet on EUR ahead of the European Central Bank (ECB) decision on Thursday, amid speculation around when the bank might cut interest rates.
This afternoon, the Eurozone’s latest consumer confidence result could influence the Euro. If households remained deeply pessimistic this month, as expected, then EUR could stumble.
US Dollar (USD) flat as markets brace for data
The US Dollar (USD) traded in a narrow range yesterday as USD investors braced for high-impact American data due out in the latter part of the week.
This left the ‘Greenback’ rangebound, although USD did manage to resist losses in the face of falling US Treasury bond yields.
US data is in short supply once again today, which could leave the safe-haven US Dollar to trade on market risk dynamics.
Canadian Dollar (CAD) wavers lower despite rising oil
The Canadian Dollar (CAD) fluctuated lower yesterday as the crude-linked currency failed to capitalise on a rise in oil prices.
Today, an ongoing absence of Canadian economic data could see CAD waver once again.
Australian Dollar (AUD) firms as business confidence beats forecasts
The Australian Dollar (AUD) climbed last night as an upbeat mood and stronger-than-expected Australian business confidence both lifted the ‘Aussie’.
New Zealand Dollar (NZD) rebounds as mood improves
The New Zealand Dollar (NZD) also rose amid the risk-on mood overnight, bouncing off multi-month lows, despite a weak PMI reading.