Euro falls following dovish ECB comments

Australian Dollar (AUD) flat amid thin trading conditions

The Australian Dollar (AUD) wavered sideways yesterday amid thin trading conditions.

In addition, a mixed market mood kept the risk-sensitive currency confined to a narrow range.

Today, mixed data could see the ‘Aussie’ wobble. Forecasters expect to see a decline in Australian consumer confidence in February and a rise in business confidence in January.

New Zealand Dollar (NZD) suffers profit-taking

The New Zealand Dollar (NZD) fell from near multi-week highs yesterday as the currency succumbed to profit-taking.

A tepid mood and lack of New Zealand data left NZD vulnerable as investors sought to cash in on last week’s rally.

Looking to today’s session, could a decline in New Zealand business inflation expectations see the ‘Kiwi’ stumble?

Pound (GBP) subdued amid lack of data

The Pound (GBP) struggled during yesterday’s European session as a lack of UK economic data left the currency exposed to losses.

Additionally, a new analysis from Goldman Sachs may have dampened Sterling sentiment, as the US bank said the UK is suffering ‘a significant long-run output cost of Brexit’.

This evening, the latest UK jobs report could pile pressure on the Pound. A sharp cooldown in wage growth may spark bets on a coming interest rate cut from the Bank of England (BoE).

Euro (EUR) slips following dovish ECB remarks

The Euro (EUR) faced selling pressure on Monday in the wake of dovish comments from European Central Bank (ECB) policymaker Fabio Panetta.

Panetta said that the time for interest rate cuts is ‘fast approaching’, thereby fuelling expectations that the ECB will soon pivot its monetary policy stance.

EUR may be able to claw back some losses later this evening. Germany’s latest ZEW economic sentiment index is forecast to have improved for the seventh consecutive month.

US Dollar (USD) quiet ahead of US inflation data

The US Dollar (USD) was muted on Monday as USD investors were reluctant to alter their positions ahead of the upcoming US inflation data.

However, USD did manage to firm against some of its weaker rivals in the wake of recent hawkish comments from Federal Reserve officials.

Turning to the session ahead, the latest US consumer price index is due tonight. Will an expected cooldown in inflation see the ‘Greenback’ slump?

Canadian Dollar (CAD) fluctuates alongside oil prices

The crude-linked Canadian Dollar (CAD) wavered yesterday as choppy oil prices impacted the currency.

With Canadian data in short supply today, crude prices could continue to drive CAD exchange rates.

Data Releases

Feb 13th 09:30   AUD    Westpac Consumer Confidence Index (Feb)    80.4
Feb 13th 10:30   AUD    NAB Business Confidence (Jan)    1
Feb 13th 12:00   NZD    Business Inflation Expectations (Q1)    2.6%
Feb 13th 17:00   GBP    Average Earnings (Dec)    6%
Feb 13th 20:00  EUR    German ZEW Economic Sentiment Index (Feb)    17.5
Feb 13th 23:30  USD    Inflation Rate (Jan)    3%


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