Pound (GBP) finds success despite lacklustre data
The pound (GBP) managed to rise against its weaker rivals yesterday, without a clear catalyst for the upside.
While the Confederation of British Industry’s (CBI) latest distributive trades survey beat forecasts, it remained in negative territory and only showed a slight improvement from -25 to -23.
Looking ahead, Bank of England (BoE) policymaker Swati Dhingra will deliver a speech this afternoon. As she is one of the more dovish members of the BoE’s Monetary Policy Committee, her comments could pressure the pound.
Euro (EUR) buoyed by USD weakness and ECB comments
The euro (EUR) rose against many of its counterparts yesterday as EUR benefitted from its strong negative correlation with the US dollar (USD).
In addition, hawkish comments from European Central Bank (ECB) policymaker Isabel Schnabel aided the euro, as she seemed cautious about the prospect of further interest rate cuts.
Germany’s latest consumer confidence index unexpectedly fell this morning, with morale hitting an 11-month low heading into March. This could weigh on EUR today.
US dollar (USD) drops alongside Treasury yields
The US dollar fell yesterday, despite a risk-off market mood, as declining US Treasury yields dragged the ‘greenback’ lower.
A slump in US consumer confidence in February added to the pressure on the American currency.
This afternoon, Federal Reserve policymaker Tom Barkin is due to speak. Could a hawkish tone help to revive the US dollar?
Canadian dollar (CAD) slides as oil prices decline
The crude-linked Canadian dollar (CAD) fell yesterday as a drop in oil prices dragged on the currency.
With Canadian data thin on the ground today, oil movements may drive CAD exchange rates once again.
Australian dollar (AUD) slips as inflation misses forecasts
The Australian dollar (AUD) stumbled overnight after Australia’s latest monthly CPI indicator missed forecasts to hold at 2.5% in January, rather than rise to 2.6%.
New Zealand dollar (NZD) falls in tandem with AUD
The New Zealand dollar (NZD) also softened overnight, with the ‘kiwi’ dragged lower by its positive correlation with the ‘Aussie’.
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