Australian Dollar (AUD) slides amid downbeat market mood
The Australian Dollar (AUD) slumped on Tuesday despite upbeat economic data.
While consumer confidence improved more than expected in February, a souring market mood saw AUD succumb to its risk-sensitive nature.
The ‘Aussie’ may see muted trade today, due to a lull in impactful data releases.
New Zealand Dollar (NZD) slumps as RBNZ rate hike bets fade
On Tuesday, the New Zealand Dollar (NZD) slipped against its peers as business inflation expectations printed below expectations.
For the first quarter, businesses in New Zealand expect inflation to print at 2.5%, below the prior 2.76% reading. This prompted investors to scale back bets on further interest rate hikes from the Reserve Bank of New Zealand (RBNZ).
New Zealand macroeconomic data is absent today, which may leave the ‘Kiwi’ vulnerable to shifts in risk appetite.
Pound (GBP) rallies as labour data beats forecasts
The Pound (GBP) strengthened against most major peers yesterday, as the latest batch of labour data smashed forecasts.
Wage growth cooled less than expected in the three months to December, while the UK’s unemployment rate unexpectedly ticked lower to 3.8%. This sparked bets that the Bank of England (BoE) will leave rates unchanged for longer, boosting GBP.
This evening, the latest UK inflation data is due to print. Could rising core and headline inflation boost the Pound?
Euro (EUR) supported by improving German outlook
The Euro (EUR) ticked higher yesterday, following a significant improvement in German economic sentiment.
The latest ZEW index beat forecasts, with sentiment improving for the seventh consecutive month to hit a one-year high.
Tonight, the second estimate for the Eurozone’s fourth-quarter GDP data is due to print. Bar a significant upward or downward revision, this may have little impact on the Euro.
US Dollar (USD) rockets amid hotter-than-expected inflation
Over the course of Thursday’s session, the US Dollar (USD) skyrocketed following the latest consumer price index.
In January, both core and headline inflation printed above forecasts. As such, investors pared back their bets on aggressive interest rate cuts from the Federal Reserve this year.
The ‘Greenback’ may see further volatility today as investors continue to adjust their bets on Fed rate cuts.
Canadian Dollar (CAD) seesaws despite rising oil prices
The Canadian Dollar (CAD) traded in a mixed capacity on Tuesday, despite an uptick in crude oil prices.
Oil prices are likely to be the main driver of movement for the ‘Loonie’ today. If prices remain buoyant, CAD could gain ground.
Data Releases
Feb 14th 17:00 GBP Inflation Rate (Jan) 4.2%
Feb 14th 20:00 EUR GDP Growth Rate (Q4) 0%