Pound (GBP) wobbles ahead of BoE decision
The pound (GBP) wavered without a clear direction on Tuesday as a lack of UK data left the currency exposed to volatility.
Furthermore, hesitancy ahead of the Bank of England’s (BoE) interest rate decision tomorrow also limited Sterling.
Turning to today, UK economic data is still thin on the ground ahead of the BoE decision. As a result, Sterling may remain subdued.
Euro (EUR) rises as Eurozone retail sales beat forecasts
The euro (EUR) rose yesterday, with the currency shrugging off a decline German factory orders to gain ground against its weaker rivals.
Supporting EUR was an uptick in German exports, as well as a larger-than-forecast recovery in Eurozone retail sales.
This morning, a 0.4% decline in German industrial production in March could apply some pressure to the euro. However, the contraction was smaller than expected, so any losses may be limited.
US dollar (USD) unclear as risk appetite wavers
The US dollar (USD) saw mixed movement yesterday as an uncertain market mood and a lack of data kept the ‘greenback’ confined to a narrow range.
In addition, muddled messaging from some Federal Reserve policymakers further contributed to USD’s unclear movement.
Looking ahead, three Fed officials are due to speak from this afternoon. Should they strike a cautious tone, the ‘greenback’ could weaken.
Canadian dollar (CAD) falls as oil prices retreat
The crude-linked Canadian dollar (CAD) fell yesterday as a drop in oil prices dragged the ‘loonie’ lower.
Oil prices may be the driving factor behind CAD movement again today. If crude continues to fall, the Canadian dollar may also stumble.
Australian dollar (AUD) extends post-RBA losses
The Australian dollar (AUD) stumbled last night as the less hawkish stance from the Reserve Bank of Australia (RBA) following its rate decision yesterday continued to pressure the ‘Aussie’.
New Zealand dollar (NZD) edges lower amid risk-off trade
The New Zealand dollar (NZD) softened slightly overnight as a cautious market mood dampened demand for the risk-sensitive ‘kiwi’.