Pound (GBP) uncertain in absence of data
The pound (GBP) traded without a clear direction yesterday as an ongoing lack of data left Sterling rudderless.
As a result, Sterling lost ground against many of its stronger peers while inching higher against weaker currencies.
UK economic data continues to be in short supply today, likely leaving GBP without a clear trajectory.
Euro (EUR) falls following ECB remarks
The euro (EUR) came under pressure on Wednesday following comments from European Central Bank (ECB) policymaker Martin Kocher.
Kocher said that if the euro continues to appreciate against the US dollar (USD), it could lead to lower inflation and may open the door to further rate cuts from the ECB.
Today, the Eurozone’s economic sentiment indicator for January is due out. A forecast improvement in the index could lend EUR support.
US dollar (USD) hits floor as Fed news looms
After touching multi-year lows, the US dollar hit a floor yesterday, trading mostly flat and even crawling slightly higher against some rivals.
USD was subdued as investors awaited the Federal Reserve decision and President Donald Trump’s expected nomination of the next Fed Chair, although Trump is yet to unveil his pick to replace Jerome Powell.
Looking forward, the US dollar could face fresh selling pressure today, particularly if initial jobless claims in the US rose last week.
Canadian dollar (CAD) buoyed by BoC decision
The Canadian dollar (CAD) rose yesterday as the Bank of Canada (BoC) held interest rates steady and showed confidence that inflation was under control.
CAD could face headwinds later today, if Canada’s latest trade figures point to a widening deficit.
Australian dollar (AUD) soars on commodities and RBA bets
The Australian dollar (AUD) surged overnight as rising commodity prices and growing bets on a Reserve Bank of Australia (RBA) interest rate hike next week boosted the currency.
New Zealand dollar (NZD) climbs as inflation expectations rise
The New Zealand dollar (NZD) also strengthened overnight as RBA rate hike bets and rising domestic inflation expectations increased bets on tighter policy from the Reserve Bank of New Zealand (RBNZ).
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