Euro blighted by disappointing German industrial data

Australian Dollar (AUD) fades amid lull in data releases 

Wednesday saw the Australian Dollar (AUD) initially strengthen, following a hawkish speech from Reserve Bank of Australia (RBA) Governor Michelle Bullock.  

However, AUD retreated over the day’s trade as a lack of macroeconomic data sapped sentiment towards the currency.  

Due to a lack of data today, the ‘Aussie’ may struggle to find its footing against its peers. 

New Zealand Dollar (NZD) supported by better-than-forecast jobs data 

Yesterday, the New Zealand Dollar (NZD) strengthened at the beginning of the day’s trade following robust employment data. 

While the unemployment rate for Q4 2023 ticked up to 4%, it printed notably below forecasts and remained well below the recent averages. However, the ‘Kiwi’ then fluctuated over the session amid shifting levels of risk appetite. 

New Zealand business inflation expectations for the first quarter are due later today. Economists anticipate a fall in the reading, which could dent NZD. 

Pound (GBP) in flux despite hawkish BoE comments 

The Pound (GBP) wavered over the course of Wednesday’s session, amid a fluctuating market mood. 

Hawkish comments from Bank of England (BoE) Deputy Governor Sarah Breeden lent some support, as she advocated for keeping interest rates unchanged for longer. 

BoE policymakers Swati Dhingra and Catherine Mann are due to speak overnight. As the pair will likely advocate for dovish and hawkish approaches respectively, the Pound may waver again. 

Euro (EUR) softens amid downbeat German industrial data 

Muted trade affected the Euro (EUR) yesterday, as German industrial production data disappointed investors. 

In December, production contracted more than expected, highlighting an ongoing issue in the Eurozone’s largest economy. As this called into question the bloc’s economic health, EUR struggled to attract support. 

Overnight, European Central Bank (ECB) Chief Economist Philip Lane is due to speak. If he maintains the ECB’s hawkish stance, the Euro may strengthen. 

US Dollar (USD) listless amid light data calendar 

On Wednesday, an absence of data releases saw the US Dollar (USD) trade in a limited capacity. 

The lull in releases left the safe-haven currency exposed to shifting amounts of risk appetite, prompting directionless trade. 

Tonight, the latest initial jobless claims figure is due to print. In the week ending 3 February, claims are forecast to have fallen, which may lift USD exchange rates. 

Canadian Dollar (CAD) undermined by surprise trade deficit 

A surprise deficit in Canada’s balance of trade in December weakened the Canadian Dollar (CAD) on Wednesday. 

Oil prices are likely to be the predominant driver of movement for the crude-linked ‘Loonie’ today. Could an uptick in oil boost CAD exchange rates? 

Data Releases 
Feb 8th 12:00 NZD Business Inflation Expectations (Q1) 2.6%
Feb 8th 23:30 USD Initial Jobless Claims (3/Feb) 220,000
Feb 9th 00:00 GBP BoE Dhingra Speech
Feb 9th 01:00 GBP BoE Mann Speech
Feb 9th 01:30 EUR ECB Lane Speech