Euro (EUR) rises on ECB comments
The Euro (EUR) climbed higher yesterday as the currency benefitted from its strong negative correlation with a weaker US Dollar (USD).
In the afternoon, hawkish comments from European Central Bank (ECB) President Christine Lagarde added to EUR’s upside. Lagarde indicated that interest rates may stay higher for longer.
This morning, the latest German consumer confidence index showed a slight increase heading into March, although it remained it deeply pessimistic territory. This seems to be limiting EUR demand.
Pound (GBP) edges higher following positive economic data
The Pound (GBP) found success against its weaker rivals yesterday following better-than-expected retail sales data.
The Confederation of British Industry’s (CBI) latest distributive trades survey printed far above forecasts, although it remained in negative territory.
Turning to today, Bank of England (BoE) Deputy Governor Dave Ramsden is due to speak this afternoon. Could any hawkish hints around monetary policy lift the Pound?
US Dollar (USD) softens in absence of data
The US Dollar initially struggled on Monday amid a lack of American economic data and a pullback in US Treasury bond yields.
However, Treasury yields recovered as the session progressed, helping the ‘Greenback’ recoup some of its losses.
Looking ahead, the latest US durable goods orders could dent USD later today. Economists expect orders to have slumped by 4.5%.
Canadian Dollar (CAD) slides amid oil demand fears
The crude-linked Canadian Dollar (CAD) weakened yesterday. Although oil prices enjoyed a short-term uptick, some forecasters warned that demand would wane as the year went on, which ultimately undermined the ‘Loonie’.
Today, oil price dynamics and demand expectations could continue driving CAD amid a lack of Canadian economic data.
Australian Dollar (AUD) rebounds amid risk-positive trade
The Australian Dollar (AUD) slipped last night, hitting two-week lows against some peers, before an upbeat mood helped the risk-sensitive currency recover.
New Zealand Dollar (NZD) struggles despite improving market mood
The New Zealand Dollar (NZD) also stumbled overnight but, unlike the ‘Aussie’, the ‘Kiwi’ failed to recoup the majority of its losses despite the improving appetite for risk.