Pound (GBP) mixed amid lack of UK data
The Pound (GBP) traded without a clear direction at the end of last week amid a lack of UK economic data.
Meanwhile, an upbeat market mood cushioned the increasingly risk-sensitive currency from losses.
UK data remains in short supply today, which may leave Sterling lacking direction once again.
Euro (EUR) recovers from poor German consumer confidence
The Euro (EUR) faced initial pressure on Friday following an unexpected deterioration in German consumer confidence heading into February.
However, single currency benefitted from its strong negative correlation with a weakening US Dollar (USD). This allowed EUR to find some success during the second half of the session.
Today, Eurozone data is in short supply. EUR could be driven once again by its trading relationship with USD.
US Dollar (USD) wavers lower amid risk-on mood
The US Dollar fell through Friday’s session as a risk-on mood gripped markets, thereby dampening the safe-haven currency’s appeal.
USD managed to recoup some losses in the afternoon, despite a slightly larger-than-forecast cooldown in the core PCE price index – the Federal Reserve’s preferred inflation gauge – in December.
Market risk dynamics could determine USD movement again today. Could fresh fears of an escalation in the Middle East see anxious traders opt for the US Dollar?
Canadian Dollar (CAD) climbs as oil hits two-month high
The oil-sensitive Canadian Dollar (CAD) strengthened at the end of last week as crude prices zig-zagged higher. WTI crude ended the week above $78 per barrel, its highest level since November 2023.
Amid a lack of Canadian economic data today, CAD investors may continue to watch the oil market for fresh impetus. If oil extends its upside, the Canadian Dollar could climb.
Australian Dollar (AUD) rises alongside commodity prices
The Australian Dollar (AUD) gained ground last night as stronger commodity prices boosted the resource-linked ‘Aussie’.
New Zealand Dollar (NZD) enjoys AUD correlation
The New Zealand Dollar (NZD) ticked slightly higher overnight thanks to NZD’s positive correlation with AUD.