Pound (GBP) wobbles despite positive GDP
The Pound (GBP) wavered without a clear direction yesterday despite new UK GDP data revealing a recovery in January.
While the headline GDP figure showed a return to growth at the start of this year, underlying signs of weakness in the British economy put pressure on the Pound.
Today, UK economic data is thin on the ground. This could leave Sterling to trade without a clear trajectory.
Euro (EUR) edges higher despite weak data
The Euro (EUR) found some success on Wednesday, despite a huge 3.2% slump in Eurozone industrial production in January.
The modest upside came amid a risk-off market mood and weakness in the US Dollar (USD), with which the Euro is negatively correlated.
Turning to today, two European Central Bank (ECB) policymakers are due to speak. Any indication that they are open to considering interest rate cuts could undermine the single currency.
US Dollar (USD) slips despite risk-off trade
The US Dollar struggled yesterday, slipping against its stronger peers, as a cautious mood failed to lend the safe-haven currency support.
Ongoing bets on a June rate cut from the Federal Reserve, despite Tuesday’s hotter inflation reading, served to undermine the ‘Greenback’.
Looking ahead, the latest US retail sales figures out this afternoon could impact USD. Will a recovery in domestic sales support the ‘Greenback’?
Canadian Dollar (CAD) buoyed by strong oil prices
The crude-linked Canadian Dollar (CAD) climbed yesterday as rallying oil prices lifted the ‘Loonie’.
Canadian economic data remains in short supply today, so oil prices may again determine CAD’s movement. If crude continues to strengthen, the Canadian Dollar could post further gains.
Australian Dollar (AUD) slips as market mood sours
The Australian Dollar (AUD) slipped overnight as a souring market mood dented the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) trims gains as risk appetite wanes
The New Zealand Dollar (NZD) initially strengthened last night before the shift in market risk dynamics saw the ‘Kiwi’ relinquish its gains.