Euro (EUR) plummets amid bets on April rate cut
The Euro (EUR) plunged yesterday, hitting a six-month low against the Pound, following dovish commentary from European Central Bank (ECB) policymakers.
Peter Kažimír, one of the more hawkish voices at the ECB, said in a blog post that an interest rate cut is ‘within our reach’ and signalled an April cut was on the table. Meanwhile, his colleague Mário Centeno advocated cutting rates sooner rather than later.
The single currency could suffer further losses today, if the latest Eurozone GDP data shows that the bloc slipped into a recession in the second half of 2023.
Pound (GBP) stumbles in absence of data
The Pound (GBP) slipped yesterday as a lack of UK economic data left GBP vulnerable to losses.
With no fundamental factors supporting the Pound, the currency suffered against its stronger peers.
Market-moving UK data remains in short supply today, which could leave Sterling open to another decline.
US Dollar (USD) wavers amid risk-positive trade
The safe-haven US Dollar (USD) initially weakened on Monday amid a cautiously optimistic market mood and a drop in US Treasury yields.
However, the ‘Greenback’ clawed back some losses later in the session as risk appetite started to fade.
Looking ahead to this afternoon, an expected decline in US job vacancies in December could weigh on USD, if they indicate a cooldown in the American labour market.
Canadian Dollar (CAD) wobbles as oil prices fall
The Canadian Dollar (CAD) faced mixed movement yesterday as a drop in oil prices pressured the commodity-linked ‘Loonie’.
An ongoing lack of Canadian data today could see crude prices continue to influence CAD. Could another fall in prices drag the currency lower?
Australian Dollar (AUD) wavers amid mixed factors
The Australian Dollar (AUD) was volatile last night amid a large slump in Australian retail sales, a mixed market mood, and strong commodity prices.
New Zealand Dollar (NZD) ticks higher as commodity prices rise
The New Zealand Dollar (NZD) managed to strengthen last night, despite the mixed market mood, as rising commodity prices boosted the resource-linked ‘Kiwi’.