Pound (GBP) rises despite lack of data
The pound (GBP) gained ground against many of its rivals yesterday, despite a lack of British economic data.
The upside came as the increasingly risk-sensitive currency enjoyed an upbeat market mood amid hopes of progress on a ceasefire deal in the Middle East.
Market-moving UK data is absent from the calendar again today. As a result, Sterling could trade in a wide range.
Euro (EUR) softens as economic sentiment declines
The euro (EUR) struggled to attract support yesterday after economic sentiment in the Eurozone unexpectedly declined in April.
In addition, mixed German inflation figures infused EUR with some volatility. While the harmonised inflation rate beat forecasts, headline inflation came in lower than expected.
Coming up, the Eurozone’s latest GDP growth rate and consumer price index are both due out this morning. Could a return to growth and stubborn inflationary pressures see the euro leap higher?
US dollar (USD) weakens amid risk-positive trade
The US dollar (USD) stumbled out of the gate this week as the risk-on market mood sapped demand for the safe-haven currency.
In addition to optimism over ceasefire negotiations in the Middle East, last week’s bumper profit announcements from many tech and commodities firms cheered investors.
Looking at the session ahead, an expected decline in US consumer confidence could weigh on USD this afternoon. However, movement may be limited ahead of the Federal Reserve interest rate decision tomorrow evening.
Canadian dollar (CAD) subdued amid quiet trading conditions
The crude-linked Canadian dollar (CAD) wavered mostly sideways on Monday, although it weakened against its stronger peers, amid a lack of Canadian economic data and flat oil prices.
This afternoon, Canada’s latest GDP data is due out. Could a notable slowdown in Canadian economic growth in March see the ‘loonie’ stumble?
Australian dollar (AUD) dented by downbeat retail sales
The Australian dollar (AUD) weakened overnight as an unexpected contraction in Australian retail sales dragged the ‘Aussie’ lower.
New Zealand dollar (NZD) slumps as business confidence plummets
The New Zealand dollar (NZD) fell sharply last night as business confidence in New Zealand unexpectedly plunged to its lowest level since September 2023.