Pound (GBP) soars amid cheery trade
The Pound (GBP) rallied at the end of last week’s session, striking multi-month highs against some peers, as a cheery market mood lifted the increasingly risk-sensitive currency.
In addition, Sterling benefitted from an expected policy divergence between the Bank of England (BoE) and other central banks. Markets speculated that the BoE may be one of the last to start cutting interest rates.
The coming week could prove eventful for the Pound, with the latest labour market report and GDP figures out tomorrow and Wednesday, respectively. GBP may be muted in the meantime.
Euro (EUR) undermined by dovish ECB comments
The Euro (EUR) faced some selling pressure on Friday, despite a decent recovery in German industrial production in January.
The downside came as some European Central Bank (ECB) policymakers hinted at an April rate cut. However, EUR’s strong negative correlation with a tumbling US Dollar (USD) helped the currency claw back some losses.
Amid a lack of Eurozone economic data today, we may see the single currency trade in a narrow range.
US Dollar (USD) tumbles as jobs data fuels rate cut bets
The US Dollar fell sharply on Friday, striking a two-month low, after the latest American labour market data fuelled Federal Reserve interest rate cut bets.
Although February’s non-farm payrolls figure beat forecasts, the number for January was revised sharply lower. Meanwhile, US unemployment unexpectedly leapt up to a two-year high of 3.9%. Together, these releases saw markets price in a more aggressive pace of policy loosening from the Fed.
Market-moving US data is thin on the ground today. As a result, risk sentiment could drive the safe-haven ‘Greenback’. Investors are likely looking ahead to tomorrow’s inflation release, which could prompt sharp movement.
Canadian Dollar (CAD) slips as joblessness rises
The Canadian Dollar (CAD) weakened on Friday afternoon after Canada’s unemployment rate for February rose from 5.7% to 5.8%.
Turning to today, a lack of Canadian economic data may leave the crude-linked ‘Loonie’ to trade in relation to oil price dynamics.
Australian Dollar (AUD) retreats as market mood sours
The Australian Dollar (AUD) started this week’s session on the back foot, slightly trimming some of last week’s gains amid a cautious market mood.
New Zealand Dollar (NZD) rangebound in absence of data
The New Zealand Dollar (NZD) trading most sideways overnight, as thin trading conditions kept NZD confined to a narrow range.