US dollar recovers amid risk-off mood 

Pound (GBP) mixed amid BoE uncertainty 

The pound (GBP) was mixed yesterday as investors digested the Bank of England’s (BoE) interest rate decision. 

Although the bank struck a slightly more hawkish tone than expected, huge uncertainty over the policy outlook left Sterling struggling to gain against stronger peers. 

The Confederation of British Industry’s (CBI) latest industrial trends orders survey is out later this morning. Signs that the UK manufacturing industry remains on the ropes could pressure GBP. 

Euro (EUR) dented by USD correlation 

The euro (EUR) slid against its stronger rivals yesterday as the currency suffered from its negative correlation with a recovering US dollar (USD). 

In addition, fading hopes for a peace deal in Ukraine put pressure on EUR. 

This afternoon, the Eurozone’s latest consumer confidence indicator is due out. If trade war fears and Ukraine concerns weighed on consumer morale this month, EUR could stumble. 

US dollar (USD) recovers amid risk-off mood 

The US dollar started yesterday’s session on the back foot after the Federal Reserve cut its growth forecasts at its latest interest rate decision. 

However, the ‘greenback’ was able to recover strongly as market risk aversion supported the safe-haven currency. 

Later on, Fed policymaker John Williams will deliver a speech. Any indication that weaker US growth could see the bank accelerate its loosening cycle may weigh on USD.  

Canadian dollar (CAD) boosted by rising oil prices 

The crude-linked Canadian dollar (CAD) strengthened yesterday, with a rise in oil prices lifting the ‘loonie’. 

Canada’s latest retail sales figures could impact the ‘loonie’ later today. If sales growth recovered in February, as expected, CAD could gain ground. 

Australian dollar (AUD) wavers amid uncertain mood 

The Australian dollar (AUD) traded without a clear directional bias overnight amid a lack of data and mixed market mood. 

New Zealand dollar (NZD) finds limited success on trade data 

The New Zealand dollar (NZD) was also uncertain overnight, although the ‘kiwi’ managed to rise against weaker peers thanks to positive domestic trade data. 

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