Pound (GBP) firms as investors buy the dip
The Pound (GBP) enjoyed some dip-buying yesterday as investors sought to pick up a bargain in the wake of Sterling’s recent losses.
In addition, an upbeat market mood lent the increasingly risk-sensitive currency some support.
Today, market-moving UK data remains thin on the ground. As a result, the Pound could trade without a clear direction.
Euro (EUR) slips as Eurozone sales decline
The Euro (EUR) weakened on Wednesday, despite German factory orders data for December smashing forecasts to print at 8.9%.
The EUR selling bias was then reinforced by a 1.1% contraction in Eurozone retail sales, also in December.
This morning, new data revealed a far larger-than-forecast decline in German industrial production in December. This could pressure EUR through the first half of the session.
US Dollar (USD) muted as market mood improves
The US Dollar (USD) moved mostly sideways yesterday as a risk-on market mood dampened demand for the safe-haven ‘Greenback’.
However, USD remained afloat as investors continued to price out a March rate cut following recent hawkish comments from Federal Reserve Chair Jerome Powell.
Three Fed policymakers are due to deliver speeches this evening. If they strike a hawkish tone, USD could renew its upside.
Canadian Dollar (CAD) subdued despite uptick in oil
The crude-linked Canadian Dollar (CAD) struggled to find its footing yesterday, with CAD trending lower against its stronger peers despite rising oil prices and upbeat PMI data.
Later this evening, the Bank of Canada’s (BoC) latest meeting minutes are due out. A dovish consensus among policymakers could weigh on the ‘Loonie’.
Australian Dollar (AUD) flat following weak industrial data
The Australian Dollar (AUD) traded sideways overnight after the latest Ai Group industry index fell further than expected. However, a positive market mood lent the risk-sensitive currency some support.
New Zealand Dollar (NZD) rises on strong jobs data
The New Zealand Dollar (NZD) climbed during last night’s session after stronger-than-expected New Zealand employment data.