Pound (GBP) choppy in absence of data
The pound (GBP) started the week struggling to find a clear direction as a lack of British economic data left Sterling rudderless.
This also exposed the increasingly risk-sensitive currency to market risk dynamics, with GBP holding steady against its safer peers and losing ground elsewhere amid an improving market mood.
Turning to today, UK economic data remains in short supply. As a result, Sterling could waver once again.
Euro (EUR) uncertain following mixed German data
The euro (EUR) also traded in a wide range on Monday following mixed German data, with the country’s latest trade and industrial production reports missing and beating forecasts, respectively.
Meanwhile, the single currency was supported by its negative correlation with a weaker US dollar (USD) but undermined by a risk-on market mood.
Eurozone data is thin on the ground today, which could see EUR continue to trade without a clear trajectory.
US dollar (USD) slips amid improving market mood
The US dollar fell as this week’s session began, as demand for the safe-haven currency fizzled out amid a cautiously upbeat market mood.
Investors reacted positively to rumours that Israel-Hamas peace talks were progressing, along with news that Israel was withdrawing troops from South Gaza.
This afternoon, an expected improvement in US economic optimism heading into April could lend USD some support.
Canadian dollar (CAD) stumbles amid oil volatility
The crude-linked Canadian dollar (CAD) softened against many of its rivals yesterday as volatility in the oil market undermined the ‘loonie’.
Oil prices could continue to drive CAD today. Will more choppy movement continue to suppress demand for the Canadian dollar?
Australian dollar (AUD) wobbles following mixed data
The Australian dollar (AUD) fluctuated overnight amid mixed data releases. Australia’s latest consumer confidence index unexpectedly deteriorated, while business confidence surprised to the upside.
New Zealand dollar (NZD) wavers alongside AUD
The New Zealand dollar (NZD) also wavered last night, with the ‘Kiwi’ trading in tandem with the ‘Aussie’ and shrugging off a slump in New Zealand business confidence.