Pound (GBP) struggles despite BoE rate cut pushback
The pound (GBP) initially enjoyed some support yesterday after Bank of England (BoE) policymaker Megan Greene pushed back on interest rate cut bets.
However, Sterling eventually slipped lower against its stronger peers as the session progressed.
This morning the pound could face mixed movement following the latest GDP figures. Although January’s growth was revised up from 0.2% to 0.3%, this slowed to 0.1% in February, suggesting the UK economy remains fragile.
Euro (EUR) slides following ECB decision
The euro (EUR) fell against most of its peers yesterday as investors responded to the European Central Bank’s (ECB) April interest rate decision.
While the bank left rates unchanged, it explicitly mentioned that lower rates are on the way, with markets now convinced of a cut in June.
Today, the euro could struggle to regain ground after Germany’s final inflation rate confirmed a cooldown last month, consolidating bets on a coming ECB rate cut.
US dollar (USD) eases off five-month highs
The US dollar (USD) suffered some profit-taking yesterday, after striking a five-month high in the wake of the US inflation release on Wednesday.
In addition, an improving market mood drew some support away from the safe-haven ‘greenback’.
Looking ahead, the latest US consumer sentiment reading could affect USD exchange rates today. Will a decline in household morale put pressure on the ‘greenback’?
Canadian dollar (CAD) dented by falling oil prices
The crude-linked Canadian dollar (CAD) declined during yesterday’s session amid a fall in oil prices.
With Canadian economic data still in short supply today, CAD’s fortunes could remain tied to oil price dynamics. Could stronger oil prices today boost the ‘loonie’?
Australian dollar (AUD) weakens amid risk-off mood
The Australian dollar (AUD) softened overnight as a souring market mood dragged the risk-sensitive currency lower.
New Zealand dollar (NZD) falls as manufacturing sector contracts
The New Zealand dollar (NZD) fell last night after New Zealand’s latest manufacturing PMI missed forecasts, with the sector slipping deeper into contraction territory.