Pound (GBP) slides amid lack of support
The pound (GBP) fell against many of its rivals yesterday, as a lack of UK data left the currency vulnerable to profit-taking.
Furthermore, a gloomy market mood put some pressure on the risk-sensitive pound.
Sterling ends the week with UK data still thin on the ground. Therefore, the pound may trade without a clear direction today.
Euro (EUR) boosted by ECB decision
The euro (EUR) strengthened yesterday, building on this week’s impressive gains, as the European Central Bank (ECB) struck a more hawkish tone than expected at its policy announcement.
Although the ECB cut interest rates by 25bps, as expected, the bank’s accompanying statement suggested that future rate cuts could come at a slower pace.
This morning, ECB President Christine Lagarde is due to speak. If she reiterates the bank’s slightly more cautious outlook on future rate cuts, EUR could strengthen.
US dollar (USD) subdued ahead of payrolls data
The US dollar (USD) traded in a narrow range yesterday with investors awaiting today’s US jobs data.
This muted tone left USD to waver near multi-month lows, following this week’s steep losses amid US recession fears.
February’s non-farm payrolls data for the US is in the spotlight today. An expected uptick in job creation could help revive the US dollar.
Canadian dollar (CAD) rebounds on tariff concession hopes
The Canadian dollar (CAD) recovered some of its recent losses yesterday amid news that some Canadian goods and services may receive a one-month exclusion from US President Donald Trump’s hefty tariffs.
A much stronger-than-expected recovery in Canadian business activity, as reported in February’s Ivey PMI, also aided CAD.
Looking ahead, Canadian unemployment is forecast to have ticked higher in February. This could pile fresh pressure on the ‘loonie’.
Australian dollar (AUD) slides as China’s imports plunge
The Australian dollar (AUD) faced selling pressure overnight as new data showed that Chinese imports slumped 8.4% in January to February this year amid trade war fears. This weighed heavily on the ‘Aussie’, which trades as a proxy for the Chinese economy.
New Zealand dollar (NZD) falls amid risk-off mood
The New Zealand dollar (NZD) also fell overnight as concerns about China’s latest trade data sparked widespread risk aversion.
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