Pound (GBP) steady amid quiet trade
The pound (GBP) was flat yesterday as a lack of UK economic data saw Sterling trade sideways.
Markets were also generally calm, further muting the pound’s movement.
Amid an ongoing absence of British economic data, Sterling could once again struggle to find a clear trajectory during today’s trade.
Euro (EUR) stable as calm settles over markets
The euro (EUR) followed in the footsteps of its peers yesterday, trading in a narrow range.
A lack of Eurozone data releases and a subdued tone in markets limited EUR movement, while weakness in the US dollar (USD) failed to lift the single currency despite the euro’s negative correlation with USD.
The focus for EUR investors today falls on Germany’s latest consumer confidence index. Morale improved more than forecast heading into February, therefore the euro could catch some bids.
US dollar (USD) extends selloff amid policy fears
The US dollar was the clear loser yesterday, striking fresh multi-year lows, as the recent USD selloff gathered steam.
Investors are growing increasingly wary of the US amid the possibility of another government shutdown, fears of central bank interference, and threats of fresh tariffs on Canada and South Korea from US President Donald Trump.
Turning to today, USD exchange rates may remain weak ahead of this evening’s Federal Reserve policy announcement. Although no change is expected, Trump may time his nomination of the next Fed Chair to coincide with the decision.
Canadian dollar (CAD) languishes at multi-month lows
The Canadian dollar (CAD) wavered near multi-month lows yesterday as souring US-Canada trade relations continued to weigh on the ‘loonie’.
Looking ahead, the Bank of Canada (BoC) will announce its latest rate decision this afternoon. If the bank holds interest rates and signals that they are at neutral levels, CAD could climb.
Australian dollar (AUD) rises as inflation ticks higher
The Australian dollar (AUD) firmed during the overnight session as an uptick in domestic inflation in December boosted bets on an interest rate hike from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) wavers amid mixed mood
The New Zealand dollar (NZD) witnessed some volatility during the Asian trading session as an uncertain mood gripped markets.
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