Australian Dollar (AUD) lifted by hawkish RBA speech
The Australian Dollar (AUD) gathered pace at the end of last week’s session, following a speech from Reserve Bank of Australia (RBA) Governor Michele Bullock.
Governor Bullock outlined the RBA’s commitment to taming inflation, which increased bets on the bank keeping interest rates unchanged for longer.
The ‘Aussie’ may see muted trade today, due to a lull in impactful data releases.
New Zealand Dollar (NZD) rises as RBNZ rate hike bets increase
Last Friday, the New Zealand Dollar (NZD) climbed against its peers amid escalating Reserve Bank of New Zealand (RBNZ) interest rate hike bets.
ANZ predicted that the RBNZ would increase rates by 25bps at its next meetings in February and April, with the OCR expected to hit 6%.
Macroeconomic data is absent today, which may leave movement in NZD exchange rates tied to market risk appetite.
Pound (GBP) pressured by dovish BoE remarks
The Pound (GBP) came under pressure last Friday following mixed remarks from Bank of England (BoE) policymaker Jonathan Haskel.
During a speech, Haskel explained that he could shift his position if inflationary pressures continue to ease, noting that the signs have been encouraging. This served to increase interest rate cut bets, weighing on GBP.
UK data releases are scarce today, which may prompt another session of narrow trade for the Pound.
Euro (EUR) underpinned by fading ECB rate cut bets
The Euro (EUR) endured muted trade last Friday, despite hawkish comments from European Central Bank (ECB) policymakers.
ECB rate-setter Martins Kazaks poured cold water on speculation of a spring rate cut, reaffirming comments from fellow policymaker Pierre Wunsch on Thursday.
This evening, two more ECB policymakers are due to speak. Could more hawkish comments see EUR rise?
US Dollar (USD) undermined by bullish trade
Over the course of Friday’s session, the safe-haven US Dollar (USD) softened against most major peers as the market mood improved.
Furthermore, a downward revision to the recent US inflation data exerted additional pressure. Inflation is continuously cooling, resulting in elevated Federal Reserve interest rate cut bets.
Data releases for the US Dollar are in short supply today, which may leave it directionless during today’s trade.
Canadian Dollar (CAD) unmoved by falling unemployment
The Canadian Dollar (CAD) wavered last Friday, despite upbeat employment data. In January, unemployment fell while the Canadian economy added more jobs than expected.
Oil prices are likely to be the main driver of movement for CAD exchange rates today. Could rising prices see the crude-linked currency gain ground?
Data Releases
19:45 EUR ECB Hernández de Cos Speech
19:45 EUR ECB Lane Speech