Pound (GBP) firms following BoE remarks
After wobbling through much of the session, the pound (GBP) then found its footing in the afternoon following comments from Bank of England (BoE) policymakers.
BoE Governor Andrew Bailey said the bank’s decision in March ‘genuinely remains an open question’, while Chief Economist Huw Pill and policymaker Megan Greene raised concerns about upside inflation risks.
With British data absent from today’s economic calendar, Sterling could remain subdued ahead of a key by-election in Greater Manchester tomorrow.
Euro (EUR) choppy amid Russia-Ukraine concerns
The euro (EUR) wavered yesterday, with a lack of Eurozone data leaving EUR exposed to volatility and vulnerable to losses against its stronger rivals.
Concerns about the ongoing Russia-Ukraine war put some pressure on the common currency, as the Kremlin vowed to pursue its military aims on the fourth anniversary of its full-scale invasion.
Turning to today, EUR is facing pressure this morning after German consumer confidence unexpectedly deteriorated heading into March.
US dollar (USD) wavers amid market uncertainty
The US dollar (USD) was mixed yesterday, although it managed to post modest gains against weaker peers, amid a shift in market risk appetite and tariff uncertainty.
While markets were initially risk-off amid worries about how new US tariffs could impact global trade, some upbeat US data later in the session cheered investors and stifled USD’s potential.
Looking forward, US economic data is thin on the ground, likely leaving the safe-haven ‘greenback’ to trade on market risk appetite.
Canadian dollar (CAD) wavers lower in tandem with oil
The crude-linked Canadian dollar (CAD) wobbled yesterday amid choppy oil prices, with CAD trending broadly lower overall.
Amid a lack of Canadian data today, oil prices could drive CAD movement once again. If prices rise amid US-Iran tensions, the ‘loonie’ may gain ground.
Australian dollar (AUD) soars as inflation beats forecasts
The Australian dollar (AUD) surged overnight, hitting yearly highs against some peers, as hotter-than-forecast Australian inflation boosted bets on another interest rate hike from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) climbs amid upbeat sentiment
The New Zealand dollar (NZD) also rallied overnight, with the risk-sensitive ‘kiwi’ enjoying a risk-on mood and its positive correlation with the ‘Aussie’.
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