Euro (EUR) slides amid ECB rate cut bets
The Euro (EUR) slumped on Thursday following the European Central Bank’s (ECB) first interest rate decision of 2024.
Although ECB President Christine Lagarde tried to push back on rate cut speculation, it wasn’t enough to convince investors, with many believing the bank will soon start considering rate cuts due to falling inflation and economic weakness in the Eurozone.
This morning, the latest German consumer confidence index showed that household morale in the Eurozone’s largest economy unexpectedly slumped to its worst level since March 2023. This could pressure EUR exchange rates today.
Pound (GBP) slips following bleak retail data
The Pound (GBP) stumbled yesterday following gloomy retail sales data from the Confederation of British Industry (CBI).
The CBI’s retail sales balance plunged to a three-year low this month as the cost-of-living crisis hammered consumer spending. This troubling result served to challenge recent optimism over the UK’s economic outlook.
Turning to today, Sterling could face a muted end to the week amid a lack of UK economic data.
US Dollar (USD) mixed despite US economic strength
The US Dollar (USD) traded without a clear direction yesterday, despite stronger-than-forecast US GDP data.
The American economy expanded 3.3% in the final quarter of 2023, above the expected 2% growth. However, a risk-on market mood prevented the safe-haven ‘Greenback’ from capitalising on the strong data.
The latest core PCE price index is in the spotlight for USD investors today. As the Fed’s preferred measure of inflation, a decline in the index could pile pressure on the ‘Greenback’.
Canadian Dollar (CAD) firms as oil prices climb
The Canadian Dollar (CAD) rose against its weaker rivals yesterday as rallying oil prices boosted the crude-linked ‘Loonie’.
Canadian economic data remans in short supply today. As a result, oil price dynamics may drive movement in CAD once again.
Australian Dollar (AUD) rises amid strong commodities
The Australian Dollar (AUD) edged higher overnight, despite a cautious market mood, as rising gold and iron prices boosted the appeal of the commodity-linked currency.
New Zealand Dollar (NZD) subdued amid tepid risk appetite
The New Zealand Dollar (NZD) traded with modest losses last night as a muted market mood left the risk-sensitive ‘Kiwi’ lacking support.