Pound (GBP) mixed amid lack of data
The pound (GBP) was mixed yesterday as a lack of UK economic data left the currency exposed to volatility.
While Sterling was able to strengthen against its weaker rivals, it struggled elsewhere.
Turning to today, the pound could struggle following the UK’s latest jobs data. Unemployment leapt to a six-month high while UK wage growth unexpectedly slowed, which could encourage the Bank of England (BoE) to start cutting interest rates soon.
Euro (EUR) struggles amid ECB rate cut bets
The euro (EUR) faced selling pressure yesterday, despite a recovery in Eurozone industrial production in February.
Comments from several European Central Bank (ECB) officials dented EUR, as the policymakers signalled that the bank would likely begin cutting interest rates in June.
This morning, Germany’s latest economic sentiment index is due for publication. If optimism in the Eurozone’s largest economy improved again this month, the common currency could climb.
US dollar (USD) boosted by strong retail sales
The US dollar (USD) was initially subdued yesterday as USD investors took a breather after last week’s impressive rally.
However, the ‘greenback’ was able to tick higher in the afternoon following the publication of far stronger-than-forecast US retail sales data.
The only US data out in the session ahead will be this afternoon’s industrial production figures. Could an uptick in American production keep the ‘greenback’ in demand?
Canadian dollar (CAD) rangebound as oil prices retreat
The crude-linked Canadian dollar (CAD) found its potential stifled yesterday as oil prices declined. However, CAD still managed to hold its own against many of its peers.
Canada’s consumer price index is in the spotlight for CAD investors today. Cooling inflation could weigh heavily on the ‘loonie’ by boosting bets on an interest rate cut from the Bank of Canada (BoC).
Australian dollar (AUD) falls amid souring mood
The Australian dollar (AUD) softened overnight, despite Chinese GDP beating forecasts, amid anxiety over escalating tensions in the Middle East after Israel said it would retaliate following Iran’s direct attack over the weekend.
New Zealand dollar (NZD) drops amid gloomy trade
Likewise, the New Zealand dollar (NZD) weakened overnight as risk aversion swept markets.