Pound (GBP) unclear amid lack of data
The Pound (GBP) failed to find a clear trajectory on Thursday as a lack of UK economic data left the currency exposed to market volatility.
In response, Sterling managed to firm against its safer peers while slipping against riskier rivals amid an improving market mood.
British economic data remains in short supply today, meaning GBP may trade in a wide range once again.
Euro (EUR) rocked by ECB decision
The Euro (EUR) experienced volatility yesterday, slumping and then rebounding in the wake of the European Central Bank’s (ECB) latest policy decision.
While the bank left interest rates unchanged, it also slashed its inflation forecasts, leading EUR to weaken. However, the common currency rebounded as ECB President Christine Lagarde seemed to rule out an April rate cut.
This morning, Germany’s latest industrial production report showed a larger-than-expected recovery. This could support EUR through the first half of the session.
US Dollar (USD) extends selloff amid upbeat sentiment
The US Dollar (USD) tumbled to a fresh one-month low on Thursday as a risk-on mood swept markets, draining support for the safe-haven currency.
In addition, higher-than-forecast US jobless claims weighed on USD as they fuelled speculation of a slowing labour market.
Turning to today, America’s latest non-farm payrolls report is in the spotlight. Could a sharp slowdown in the number of new jobs created last month drive USD to fresh lows?
Canadian Dollar (CAD) muted by weak oil prices
The crude-linked Canadian Dollar (CAD) was subdued yesterday as a decline in oil prices muted the currency’s movement.
Looking ahead, an expected rise in Canada’s unemployment rate could put pressured on CAD exchange rates.
Australian Dollar (AUD) supported by risk-on trade
The Australian Dollar (AUD) posted modest gains overnight as a bullish market mood boosted the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) stumbles despite improving sentiment
The New Zealand Dollar (NZD) softened during overnight trade, with the ‘Kiwi’ struggling to gain ground despite the cheery mood.