Pound (GBP) mixed in absence of data
The Pound (GBP) traded without a clear direction yesterday as a lack of UK data left the currency rudderless.
Sterling was able to recoup recent losses against some of its weaker peers, however it lost ground elsewhere.
As the week comes to an end, UK economic data remains thin on the ground. As a result, the Pound could struggle to find a clear direction once again.
Euro (EUR) falls on dovish ECB comments
The Euro (EUR) stumbled on Thursday following dovish comments from a European Central Bank (ECB) policymaker.
The ECB’s Yannis Stournaras argued that the bank should ‘start cutting rates soon’, which undermined EUR exchange rates.
Later this afternoon, ECB Chief Economist Philip Lane is due to deliver a speech. If Lane hints at a spring rate cut, EUR exchange rates could struggle.
US Dollar (USD) strengthens on upbeat data
The US Dollar (USD) rallied yesterday following strong economic data, including a rebound in US retail sales and a decline in jobless claims.
In addition, the latest US PPI figure beat forecasts, showing an acceleration in producer prices last month. Signs of economic strength and rising prices prompted markets to rein in their bets on a June rate cut from the Federal Reserve, thereby boosting the ‘Greenback’.
Looking ahead, the US consumer sentiment index for March could impact USD, although it’s forecast to hold steady. Otherwise, risk appetite could drive the US Dollar.
Canadian Dollar (CAD) supported by rising oil prices
The crude-linked Canadian Dollar (CAD) firmed against its weaker rivals on Thursday thanks to an uptick in oil prices. However, a lack of data limited the currency’s upside potential.
An ongoing lack of data may limit CAD movement again today, while oil prices may determine its direction. If crude extends its upside, the ‘Loonie’ may rise.
Australian Dollar (AUD) hits weekly lows amid risk aversion
The Australian Dollar (AUD) slid to a weekly low last night as a souring mood dented the risk-sensitive currency.
New Zealand Dollar (NZD) weakens as sentiment sours
The New Zealand Dollar (NZD) also fell during the overnight session, with the riskier ‘Kiwi’ succumbing to a gloomy market mood.