Pound (GBP) dented by political jitters
The pound (GBP) continued to face pressure amid ongoing UK political uncertainty on Tuesday.
Questions over the future of Keir Starmer’s premiership continued to swirl, amid signs that tensions within the Labour Party continue to flare.
Looking ahead, movement in the pound may be limited today, with GBP investors reluctant to alter their positions ahead of Thursday’s GDP data.
Euro (EUR) muted in quiet trade
The euro (EUR) was trapped in a narrow range through yesterday’s trading session amid a lull in Eurozone economic indicators.
While Danske Bank published a note forecasting that the European Central Bank (ECB) will keep interest rates on hold through 2027, it elicited little reaction from EUR investors.
As Eurozone data remains in short supply, the euro may continue to trade without directional bias today.
US dollar (USD) rangebound as retail sales miss
The US dollar (USD) wavered on Tuesday as an underwhelming US retail sales print was offset by a wider recovery in US assets.
The data reported sales growth stalled in December, missing forecasts for a 0.4% expansion and raising concerns about the resilience of US consumer spending.
Centre stage today will be the latest US non-farm payroll figures, with the US dollar poised to slump if recent weak US jobs data is reflected in the highly influential report.
Canadian dollar (CAD) buoyed as oil prices firm
The Canadian dollar (CAD) traded with modest support yesterday, with an uptick in oil prices helping to lift the commodity-linked currency.
CAD data remains in short supply today, likely leaving the ‘loonie’ to continue to track oil price movements today.
Australian dollar (AUD) rallies on hawkish RBA remarks
The Australian dollar (AUD) jumped in Wednesday’s Asian trading session, with AUD investors seizing on hawkish remarks from Reserve Bank of Australia (RBA) Deputy Governor, Andrew Hauser.
New Zealand dollar (NZD) buoyed by risk demand
The New Zealand dollar (NZD) also climbed in overnight trade, amid an upswing in market risk appetite.
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