Pound (GBP) uncertain in absence of data
The pound (GBP) traded in a wide range yesterday, as a lack of UK economic data left Sterling exposed to wider market turbulence.
Ongoing political uncertainty in the UK also muted the pound, although GBP investors were somewhat comforted by the fading risk of an immediate leadership challenge to Prime Minister Keir Starmer.
The focus for GBP investors today will be the UK’s fourth-quarter GDP figures. Weaker-than-expected growth at the end of 2025 could drag on the pound.
Euro (EUR) dented by Russia-Ukraine concerns
The euro (EUR) weakened yesterday as Russia-Ukraine worries weighed on the currency.
EUR faced further selling pressure in the evening, due to its strong negative correlation with the rising US dollar (USD).
Amid a lack of Eurozone data today, EUR investors may focus on a speech by European Central Bank (ECB) policymaker Piero Cipollone. However, any comments may have a limited impact on the euro.
US dollar (USD) rebounds as payrolls beat forecasts
The US dollar rebounded from multi-day lows yesterday following a surprisingly strong non-farm payrolls report.
The US economy added 130,000 jobs in January, well above the 70,000 forecast, while unemployment unexpectedly dropped from 4.4% to 4.3%.
The latest US initial jobless claims figure could impact USD today. Markets may be sensitive to any signs indicating the strength of the American labour market.
Canadian dollar (CAD) pulls back amid US-Canada tensions
Having initially touched multi-week highs against some rivals on Tuesday night, the crude-linked Canadian dollar (CAD) then retreated sharply on Wednesday, despite rising oil prices, amid escalating US-Canada tensions.
CAD could take its cues from oil price movements in the session ahead. Could a further appreciation in crude support the ‘loonie’?
Australian dollar (AUD) suffers profit-taking
The Australian dollar (AUD) initially edged higher overnight after Australian consumer inflation expectations exceeded forecasts. However, AUD then fell afoul of some profit-taking.
New Zealand dollar (NZD) underpinned by risk-on trade
The New Zealand dollar (NZD) trended slightly higher overnight as a risk-on mood supported the ‘kiwi’.
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