Pound (GBP) muted amid ongoing lack of data
The pound (GBP) was mixed yesterday as an ongoing lack of UK economic data left the currency without a clear directional bias.
While Sterling managed to gain ground against its weaker peers, it wavered in a narrow range elsewhere.
Turning to today, Sterling is under pressure after UK GDP missed forecasts to report an unexpected contraction in January. This could weigh on GBP throughout the session.
Euro (EUR) struggles amid trade war fears
The euro (EUR) faced some pressure yesterday as Donald Trump threatened a 200% tariff on EU alcohol exports, such as French wine, after the bloc unveiled countermeasures to his recent tariffs.
However, the safer euro was able to rise against some of its weaker, riskier rivals amid a gloomy global market mood.
This morning, the euro seems mixed following the latest German inflation data. Although wholesale prices rose sharply in February, the final harmonised inflation rate was revised lower.
US dollar (USD) buoyed amid gloomy trade
The US dollar (USD) rose yesterday as a risk-off market mood lifted the safe-haven ‘greenback’.
USD also drew support from the latest producer price index, as signs of easing factory gate inflation helped soothe recent recession fears.
This afternoon, the latest US consumer sentiment index is due to be published. Another decline in consumer morale could reignite fears about the American economy and dent USD.
Canadian dollar (CAD) mixed amid market uncertainty
The Canadian dollar (CAD) lacked a clear direction yesterday as trade war uncertainty, easing oil prices and USD strength all contributed to mixed movement for the ‘loonie’.
Canadian economic data is thin on the ground today. Therefore, oil price movements and tariff concerns could drive CAD exchange rates.
Australian dollar (AUD) firms as risk appetite returns
The Australian dollar (AUD ) rose overnight as a recovering market mood lifted the ‘Aussie’.
New Zealand dollar (NZD) rises amid improving mood
The New Zealand dollar (NZD) also gained ground last night thanks to the improving market mood.
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