Euro slips amid dovish ECB remarks

Australian Dollar (AUD) rallies amid risk-on trade

On Monday, the Australian Dollar (AUD) strengthened against its peers due to an upbeat market mood.

While tensions continued to flare in the Middle East, markets appeared to favour riskier assets over the day’s session.

During today’s trade, the ‘Aussie’ could struggle to attract support following this morning’s retail sales data. If sales shrank by 1% in December, as forecast, AUD may weaken over the session.

New Zealand Dollar (NZD) boosted by shrinking trade deficit

The New Zealand Dollar (NZD) similarly strengthened yesterday, following a sharp decrease in New Zealand’s trade deficit.

The cheery market mood also served to support the risk-sensitive ‘Kiwi’.

Due to a lack of impactful data releases, risk appetite may continue to drive NZD during today’s session.

Pound (GBP) wavers amid lack of data

Monday saw the Pound (GBP) endure mixed trade, amid a continued lull in data releases.

Additionally, investors are likely remaining passive as attention turns towards the Bank of England’s (BoE) interest rate decision on Thursday.

British data releases are set to remain hard to come by today, which may prevent Sterling from finding its footing.

Euro (EUR) dented by dovish ECB comments

Following remarks from European Central Bank (ECB) governing council member Mario Centeno, the Euro began to slip yesterday.

In an interview with Reuters, Centeno advocated for interest rates to be cut sooner rather than later. This sparked renewed bets on an imminent loosening of monetary policy, weighing on EUR.

This evening, the latest Eurozone GDP data is due for publication. Economists forecast a 0.1% contraction in the bloc’s economy during the fourth quarter, which may pile more pressure on the Euro.

US Dollar (USD) wobbles as markets eye Fed decision

Anticipation for the Federal Reserve’s next interest rate decision served to mute the US Dollar (USD) yesterday.

Furthermore, amid a light data calendar and bullish trade, investors looked elsewhere for opportunities.

Overnight, the latest JOLTs job openings data is due to print. In December, markets estimate a fall in the number of vacancies, which could weaken USD if the prediction is accurate.

Canadian Dollar (CAD) mixed despite tumbling oil prices

The crude-linked Canadian Dollar (CAD) saw varying trade yesterday, despite crude prices slipping by over 1% during the session.

Due to minimal data releases, oil prices are likely to remain the core catalyst of movement for the ‘Loonie’ today.

Data Releases

Jan 30th 10:30    AUD    Retail Sales (Dec)    -1%
Jan 30th 20:00    EUR    GDP Growth Rate (Q4)    -0.1%
Jan 31st 01:00    USD    JOLTs Job Openings (Dec)    8.75m