Pound (GBP) muted amid lack of data
The Pound (GBP) traded without a clear direction yesterday, as a lack of UK economic data left the currency rudderless.
Meanwhile, news of a decline in UK shop price inflation put a dampener on GBP, preventing the currency from climbing against its weaker rivals.
Looking ahead, Bank of England (BoE) policymaker Catherine Mann is due to speak this afternoon. Mann is considered one of the more hawkish members of the bank’s Monetary Policy Committee, so her comments could lift the Pound.
Euro (EUR) softens following downbeat German data
The Euro (EUR) was also subdued on Tuesday as the currency struggled to attract bids following some gloomy German data.
Although consumer confidence in the Eurozone’s largest economy improved slightly heading into March, the index remained deep in negative territory.
Later this morning, the Eurozone’s economic sentiment index for February is due out. Could a modest uptick in morale be enough to lift EUR exchange rates?
US Dollar (USD) underpinned by risk aversion
After an initial wobble, the US Dollar (USD) managed to recover its losses yesterday as a cautious market mood saw investors favour the safe-haven currency.
The ‘Greenback’ also managed to shrug off a huge slump in US durable goods orders, as orders plunged 6.1% in January.
Turning to today’s session, the second estimate for US GDP growth in the fourth quarter of 2023 could underpin USD, if it confirms a healthy expansion in the American economy.
Canadian Dollar (CAD) slips despite uptick in oil
The Canadian Dollar (CAD) stumbled on Tuesday. A rise in oil prices failed to support the crude-linked ‘Loonie’.
With Canadian economic data in short supply today, oil price movements could determine the Canadian Dollar’s direction.
Australian Dollar (AUD) slides as inflation misses forecasts
The Australian Dollar (AUD) slumped last night after Australia’s latest monthly inflation reading missed forecasts, thereby boosting bets on an interest rate cut from the Reserve Bank of Australia (RBA) later this year.
New Zealand Dollar (NZD) plunges on dovish RBNZ stance
The New Zealand Dollar (NZD) plunged overnight following the Reserve Bank of New Zealand’s (RBNZ) latest interest rate decision. The bank left rates unchanged, as expected, but struck a far more dovish tone than markets were expecting.