Pound (GBP) firms amid BoE commentary
The Pound (GBP) found some success yesterday following remarks from Bank of England (BoE) Deputy Governor Sarah Breeden.
Breeden stressed that inflation is still too high and that there was ‘some way to go’ before the bank could declare victory, suggesting that interest rate cuts are still a way off.
Today, two more BoE policymakers are due to speak. Swati Dhingra and Catherine Mann are considered the most dovish and hawkish BoE officials, respectively. Could mixed commentary see Sterling waver?
Euro (EUR) muted by weak German data
The Euro (EUR) was subdued on Wednesday after new data revealed a larger-than-forecast contraction in German industrial production in December.
However, the safer single currency managed to hold its ground against some of its riskier rivals as market sentiment began to sour.
Looking ahead, a speech this afternoon from European Central Bank (ECB) Chief Economist Philip Lane could drive EUR movement. Any hints of an April rate cut would likely see the single currency slump.
US Dollar (USD) quiet amid lack of data
The US Dollar (USD) was also muted yesterday amid an uncertain market mood and a lack of US economic data.
US Treasury yields also moved sideways, further limiting movement in the ‘Greenback’.
Turning to today, the latest US initial jobless claims figure could put pressure on USD, if it shows that new unemployment claims remained relatively high last week.
Canadian Dollar (CAD) flat as weak trade data offsets strong oil prices
The Canadian Dollar (CAD) was rangebound on Wednesday. While steadily rising oil prices lent the crude-linked ‘Loonie’ some support, surprisingly weak Canadian trade data offset the upside.
Amid a lack of CAD data releases today, oil price dynamics could drive the ‘Loonie’. Will stronger crude prices lift the Canadian Dollar?
Australian Dollar (AUD) softens on China deflation fears
The Australian Dollar (AUD) wavered slightly lower last night after China’s consumer price index revealed a fourth month of deflation, raising concerns about the country’s economy.
New Zealand Dollar (NZD) weakens amid investor anxiety
The New Zealand Dollar (NZD) likewise lost some ground overnight amid investor anxiety over the state of the Chinese economy.