Pound (GBP) slides following softer jobs data
The Pound (GBP) stumbled on Tuesday as weaker-than-forecast UK jobs data fuelled Bank of England (BoE) interest rate cut bets.
UK wage growth slowed alongside a surprise rise in unemployment. This boosted expectations on a rate cut from the BoE as early as June.
Earlier this morning, the latest UK GDP figures showed a recovery in the UK economy in January. This could lend Sterling support as the session unfolds.
Euro (EUR) rangebound as German inflation cools
Confirmation of a sharp cooldown in German inflation put a lid on the Euro (EUR) yesterday, limiting its movements.
However, as the final results matched preliminary estimates, EUR investors largely brushed off the data, sparing the single currency from losses.
Later this morning, forecasters expect to see a large decline in Eurozone industrial production in January. Could this see EUR stumble?
US Dollar (USD) marches higher following hot CPI
The US Dollar (USD) strengthened yesterday after the latest US consumer price index printed above expectations.
Headline inflation in the US unexpectedly ticked higher last month while core inflation eased less than anticipated. In response, investors trimmed their bets on a June rate cut from the Federal Reserve.
Turning to today, American economic data is in short supply, so risk appetite could drive USD. If markets remain cautious, the safe-haven ‘Greenback’ could climb.
Canadian Dollar (CAD) mixed as oil prices waver
Wavering oil prices saw the commodity-linked Canadian Dollar (CAD) wobble on Tuesday, with the currency failing to find a clear direction.
Amid an ongoing lack of Canadian economic data today, crude prices could continue to drive CAD exchange rates. More oil volatility could see the Canadian Dollar waver once again.
Australian Dollar (AUD) flat amid thin conditions
The Australian Dollar (AUD) traded sideways last night, continuing this week’s trend of muted trade, amid a lack of economic data and a tepid market mood.
New Zealand Dollar (NZD) firms as commodities prices rise
The New Zealand Dollar (NZD) rose last night, recouping yesterday’s losses, as climbing commodities prices lent the resource-linked ‘Kiwi’ some support.