Pound (GBP) uncertain following GDP figures
The pound (GBP) traded without a clear trajectory yesterday, although it managed to find limited success against weaker rivals following the UK’s latest GDP figures.
Although the finalised data confirmed the UK economy barely expanded in the fourth quarter, annual growth was revised slightly higher, from 1.3% to 1.4%.
The UK’s final manufacturing PMI for March may mute GBP today, if it contains confirmation of a slowdown in UK factory activity.
Euro (EUR) mixed despite jump in inflation
The euro (EUR) was also uncertain yesterday, after the Eurozone’s preliminary consumer price index for March marginally missed forecasts.
Headline inflation jumped from 1.9% to 2.5%. Although a sizeable jump, it was shy of the 2.6% forecast, with uncertainty over a European Central Bank (ECB) interest rate rise in April seeing EUR move without direction.
Today, the Eurozone’s final manufacturing PMI is in focus. Any deviation from the preliminary reading could influence EUR.
US dollar (USD) weakens amid fresh peace hopes
The US dollar (USD) fluctuated yesterday, eventually trending lower, as USD appeared to suffer some profit-taking.
In addition, an improving market mood dampened demand for the safe-haven ‘greenback’, after US President Donald Trump said that the war with Iran would end within ‘two weeks, maybe three’.
Turning to today, a lacklustre reading in the latest ADP employment change report could dent USD. However, the ‘greenback’ may attract support later on, if US retail sales rebounded in February.
Canadian dollar (CAD) tumbles following drop in oil prices
The crude-linked Canadian dollar (CAD) plunged yesterday, as a sharp drop in oil prices dragged the currency lower.
Canada’s latest manufacturing PMI could weigh on CAD exchange rates today. Markets expect to see a contraction in factory activity in March.
Australian dollar (AUD) firms amid improving mood
The Australian dollar (AUD) ticked higher overnight as market risk appetite improved following Trump’s comments on ending the war in Iran.
New Zealand dollar (NZD) gains ground as risk appetite recovers
The New Zealand dollar (NZD) also firmed last night amid the increased appetite for risk.
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