Pound (GBP) subdued despite rate cut pushback
The pound (GBP) struggled to attract support yesterday as a lack of UK economic data left the currency vulnerable to losses.
Investors also brushed off comments from Bank of England (BoE) policymaker Catherine Mann, who said markets are ‘pricing in too many [interest rate] cuts’.
Today, the lack of UK economic data continues. This could leave Sterling exposed to market volatility.
Euro (EUR) wobbles following German data
The euro (EUR) traded without a clear direction on Tuesday following mixed economic data from Germany.
Although consumer confidence in the Eurozone’s largest economy improved in April, German households remained deeply pessimistic.
Turning to today, the Eurozone’s economic sentiment indicator for March could impact the common currency. While an expected improvement in morale may lend EUR support, a decline in consumer inflation expectations could offset the upside.
US dollar (USD) recoups losses as durable goods orders recover
The safe-haven US dollar (USD) initially stumbled yesterday amid a cautiously upbeat market mood.
Later in the afternoon, the ‘greenback’ was able to regain ground as US durable goods orders beat forecasts to recover by 1.4% in February.
Looking ahead, risk appetite could continue to impact USD exchange rates today. If markets remain broadly upbeat, the US dollar could suffer losses.
Canadian dollar (CAD) firms following BoC comments
The Canadian dollar (CAD) found modest success on Tuesday, following comments from Bank of Canada (BoC) Senior Deputy Governor Carolyn Rogers. Rogers warned that Canada’s low productivity was an ‘emergency’, as it could lead to higher inflation.
With Canadian economic data thin on the ground today, oil price movements could drive the crude-linked ‘Loonie’.
Australian dollar (AUD) softens as inflation misses forecasts
The Australian dollar (AUD) wavered lower last night after Australia’s latest monthly inflation indicator missed forecasts to hold at 3.4%, rather than rise to 3.5%.
New Zealand dollar (NZD) dented by AUD correlation
The New Zealand dollar (NZD) stumbled alongside the ‘Aussie’ last night, although it was able to recoup losses as the session continued.