Pound (GBP) directionless amid data drought
The pound (GBP) lacked a clear trend yesterday as the continued absence of UK economic releases left Sterling without a directional bias.
As a result, GBP exchange rates fluctuated within a broad range, with the currency advancing against some peers while losing ground against others.
Looking ahead, a speech from Bank of England (BoE) Deputy Governor Dave Ramsden may influence the pound today. Should Ramsden strike a dovish tone and back further interest rate cuts, Sterling could come under pressure.
Euro (EUR) unsteady amid Greenland uncertainty
The euro (EUR) traded mixed yesterday, moving unevenly against its rivals amid lingering uncertainty surrounding Greenland.
Recent concerns about potential US military involvement have weighed on the single currency, although optimism has grown that a diplomatic outcome could emerge from a planned meeting between Greenlandic, Danish and US representatives.
That meeting is scheduled for today, with EUR investors likely to keep a close eye on developments. Any comments or signals from the talks could inject volatility into the euro.
US dollar (USD) advances as inflation holds firm
The US dollar (USD) strengthened yesterday after the latest US consumer price index revealed that both headline and core inflation remained above the Federal Reserve’s target in December.
The data reinforced expectations that the Fed will keep interest rates on hold for the time being, providing support for the ‘greenback’.
Later today, attention may turn to US retail sales figures. A predicted rebound in sales growth in November could offer the US dollar an additional lift.
Canadian dollar (CAD) falters despite higher oil prices
The Canadian dollar (CAD) traded without a clear direction yesterday, as rising oil prices failed to provide meaningful support for the commodity-linked ‘loonie’.
Oil market movements may remain a key driver for CAD today. Should crude prices continue to climb, the Canadian dollar could begin to attract renewed demand.
Australian dollar (AUD) lifted by Chinese trade figures
The Australian dollar (AUD) gained overnight after stronger-than-expected Chinese trade data boosted confidence in the ‘Aussie’, reflecting the close economic relationship between Australia and China.
New Zealand dollar (NZD) supported by improved risk appetite
The New Zealand dollar (NZD) edged higher overnight as a modest improvement in global risk sentiment helped underpin demand for the risk-sensitive currency.
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