Pound (GBP) wobbles ahead of high-impact events
The Pound (GBP) wavered without a clear direction on Monday as a lack of UK economic data left Sterling adrift.
In addition, GBP investors were hesitant to alter their positions ahead of tomorrow’s consumer price index and Thursday’s Bank of England (BoE) interest rate decision.
Turning to today, Sterling could remain subdued as data is once again thin on the ground.
Euro (EUR) knocked by dovish ECB comments
The Euro (EUR) faced some pressure at the start of this week’s session following comments from European Central Bank (ECB) policymaker Pablo Hernandez de Cos over the weekend.
De Cos said the bank could start cutting interest rates in June, which dampened EUR’s appeal.
Looking forward, later this morning we have Germany’s economic sentiment index for March. If morale improved in the Eurozone’s largest economy this month, EUR exchange rates could enjoy support.
US Dollar (USD) firms as Treasury yields rise
After a muted morning, the US Dollar (USD) was able to edge slightly higher yesterday afternoon as US Treasury yields climbed to their highest level in almost a month.
However, a cautiously upbeat market mood and the looming Federal Reserve interest rate decision kept a lid on USD’s gains.
Today, the ‘Greenback’ could remain confined to a narrow range amid a lack of data and in anticipation of the Fed’s decision tomorrow evening.
Canadian Dollar (CAD) wavers higher alongside oil
The crude-linked Canadian Dollar (CAD) was choppy yesterday, though it trended higher overall, as oil prices wavered higher and Canadian PPI beat forecasts.
This afternoon, Canada’s latest consumer price index could give CAD a boost. An anticipated rise in headline inflation last month could see investors scale back Bank of Canada (BoC) rate cut bets.
Australian Dollar (AUD) plunges following RBA decision
The Australian Dollar (AUD) slumped to near two-week lows last night after the Reserve Bank of Australia (RBA) left interest rates unchanged and failed to offer any fresh hawkish signals.
New Zealand Dollar (NZD) hits multi-month lows on AUD correlation
The New Zealand Dollar (NZD) plummeted to multi-month lows last night, with the ‘Kiwi’ dragged down by its positive correlation with the ‘Aussie’ in the wake of the RBA meeting.