Pound (GBP) mixed amid souring market mood
The Pound (GBP) traded without a clear direction on Wednesday as a gloomy market mood saw the increasingly risk-sensitive currency slip against its safer rivals but find success elsewhere.
Meanwhile, some hawkish comments from Bank of England (BoE) policymaker Catherine Mann limited the Pound’s potential losses.
Turning to today, market-moving UK data is in short supply. As a result, Sterling could struggle to find a clear direction.
Euro (EUR) recovers despite deteriorating economic sentiment
The Euro (EUR) faced selling pressure at the start of yesterday’s European session following an unexpected decline in the Eurozone’s economic sentiment index.
In the latter part of the session, EUR was able to gather its strength thanks to a pullback in the US Dollar (USD) and an anxious market mood.
Amid a slew of German economic data due out today, the country’s latest consumer price index is in the spotlight. Will a cooldown in German inflation this month dent the Euro?
US Dollar (USD) firms amid risk-off trade
The US Dollar initially marched higher on Wednesday as the bearish market impulse boosted the safe-haven currency’s appeal.
However, USD eventually trimmed its gains amid some profit-taking and a slight downward revision to US GDP in the fourth quarter of 2023.
January’s core PCE price index – the Federal Reserve’s preferred measure of inflation – is out this afternoon. Any signs that disinflation is moderating could boost USD.
Canadian Dollar (CAD) slips despite uptick in oil
The Canadian Dollar (CAD) fell yesterday, with the crude-linked currency struggling to attract support despite rising oil prices.
High-impact Canadian data could help CAD recover today. The latest GDP figure is expected to show that Canada’s economy returned to growth at the end of 2023.
Australian Dollar (AUD) recovers as retail sales rebound
After slumping yesterday, the Australian Dollar (AUD) managed to regain some ground overnight. A strong rebound in Australian retail sales in January lent AUD support.
New Zealand Dollar (NZD) languishes near multi-week lows
Unlike the ‘Aussie’, the New Zealand Dollar (NZD) was unable to recoup yesterday’s losses last night. An unexpected decline in New Zealand business confidence dented the ‘Kiwi’.