Pound (GBP) fluctuates amid BoE policy meeting
The Pound (GBP) faced notable volatility yesterday as markets reacted to the Bank of England’s (BoE) latest interest rate decision, despite the bank holding rates as expected.
GBP climbed in the wake of the policy announcement as two of the BoE’s nine rate-setters voted for a hike. However, dovish comments from Governor Andrew Bailey then pulled the rug out from under the Pound.
Turning to today, Sterling may be subdued amid a lack of UK economic data. The market’s ongoing response to yesterday’s BoE decision could drive some movement.
Euro (EUR) firms despite cooling inflation
The Euro (EUR) managed to find success against some of its peers on Thursday, as a modest cooldown in Eurozone inflation was not enough to deter EUR investors.
Supporting the Euro, the bloc’s unemployment rate held at a record low in December. In addition, European Central Bank (ECB) President Christine Lagarde once again pushed back on rate cut bets.
Today, Eurozone economic data is thin on the ground. This could leave the single currency struggling to find a clear direction.
US Dollar (USD) sheds post-Fed gains on weaker jobs data
The US Dollar (USD) opened yesterday’s session on the front foot amid a cautious market mood and lingering tailwinds following the Federal Reserve’s interest rate decision on Wednesday evening.
However, USD suffered some profit-taking after hitting multi-week highs. Weaker US jobs data in the afternoon then piled additional pressure on the ‘Greenback’, with the currency trending lower overall.
Looking forward, the latest US non-farm payrolls figure is in the spotlight for today’s session. If job creation slowed last month, as forecast, the US Dollar could tumble.
Canadian Dollar (CAD) mixed amid rising oil and softer USD
The crude-linked Canadian Dollar (CAD) faced mixed movement on Thursday, despite oil prices trending higher. CAD’s positive correlation with USD and a lack of Canadian data seemed to undermine the currency.
With data from Canada still in short supply today, oil prices and USD movement could continue to drive CAD exchange rates.
Australian Dollar (AUD) rises as PPI beats forecasts
The Australian Dollar (AUD) firmed overnight after the latest producer price inflation data printed above forecasts, thereby dampening Reserve Bank of Australia (RBA) rate cut bets.
New Zealand Dollar (NZD) buoyed by rising consumer confidence
The New Zealand Dollar (NZD) edged higher last night following an improvement in New Zealand consumer confidence last month, although its gains were limited as the index missed forecasts.