Pound (GBP) uncertain following CPI release
The pound (GBP) had a mixed performance yesterday, with GBP investors largely brushing off the UK’s latest consumer price index.
Headline inflation held steady in February while core inflation ticked up slightly. However, the data seemed somewhat outdated following the recent surge in global energy prices.
Today, UK economic data is thin on the ground, potentially leaving the pound to trade without a clear trajectory.
Euro (EUR) mixed as ECB comments offset German data
The euro (EUR) also traded without a clear directional bias yesterday.
While hawkish comments from European Central Bank (ECB) President Christine Lagarde supported EUR, the upside was offset by a deterioration in Germany’s business climate indicator.
Turning to today, the euro could face headwinds after Germany’s latest consumer confidence index showed a sharp deterioration in household morale heading into April.
US dollar (USD) firms as Iran disputes peace talk claims
The US dollar (USD) gained ground yesterday as uncertainty in the Middle East buoyed demand for the safe-haven ‘greenback’.
The cautious mood came as Iran disputed US President Donald Trump’s claim that the two sides were engaged in talks, with Tehran accusing the US of ‘negotiating with itself’ and calling Washington’s peace proposal ‘excessive’.
The latest US initial jobless claims figure could influence USD today, with a forecast rise in claims potentially denting the currency. Meanwhile, risk appetite could remain a key factor for the ‘greenback’.
Canadian dollar (CAD) subdued as oil prices drive movement
Weaker oil prices initially weighed on the crude-linked Canadian dollar (CAD) yesterday, although CAD regained some ground as oil edged back up in the afternoon.
With market-moving Canadian data in short supply today, oil price movements may continue to drive the ‘loonie’.
Australian dollar (AUD) languishes amid geopolitical uncertainty
The Australian dollar (AUD) remained subdued overnight, hovering near recent lows amid scepticism around Trump’s push for peace talks with Iran.
New Zealand dollar (NZD) slides amid anxious mood
The New Zealand dollar (NZD) fell overnight, striking multi-month lows against some peers, as a risk-off mood sapped NZD demand.
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