Australian Dollar (AUD) muted amid rising unemployment
On Thursday, the Australian Dollar (AUD) stumbled out of the gates on the back of the latest unemployment data.
In January, unemployment unexpectedly rose to 4.1%, signalling weakness in the Australian labour market. However, owing to bullish trade, AUD managed to recoup some losses against its peers.
The ‘Aussie’ may remain largely static today, as data releases are few and far between.
New Zealand Dollar (NZD) supported by risk-on trade
Upbeat trading conditions served to lift the New Zealand Dollar (NZD) yesterday, despite a lack of other data.
This same light data calendar likely prevented the ‘Kiwi’ from gathering pace, leaving its gains limited.
NZD may see volatile trade today, as markets digest the latest New Zealand manufacturing PMI for January.
Pound (GBP) pressured as UK enters technical recession
Yesterday, confirmation that the UK had entered a technical recession pressured the Pound (GBP).
In Q4 2023, the UK economy contracted by 0.3%, marking the second consecutive quarter of shrinking activity. With this in mind, investors began to price in additional interest rate cuts from the
Bank of England (BoE), pushing GBP lower.
This evening, the latest UK retail sales data is due to print. In January, economists expect sales to have increased by 1.5%, which could strengthen Sterling.
Euro (EUR) rangebound amid dovish ECB remarks
Yesterday, the Euro (EUR) traded listlessly following dovish remarks from European Central Bank (ECB) President Christine Lagarde.
During a testimony, President Lagarde advocated for the ECB’s current data-driven approach, and highlighted the Eurozone’s bleak economic outlook. Additionally, the safer Euro struggled further amid upbeat trade.
Data releases are scarce today, which may shift the focus to a speech from ECB policymaker Isabel Schnabel. Hawkish remarks could boost EUR.
US Dollar (USD) slips amid falling retail sales
Following news that US retail sales declined more than expected, the US Dollar (USD) slipped against its peers yesterday.
Sales declined by 0.8% in January, showing signs of falling consumer spending. However, jobless claims for the week ending 10 February printed below expectations, cushioning the ‘Greenback’ from steep losses.
The latest US PPI figures are due to print tonight. Economists have forecast a 0.1% increase in January, which may do little to support the ‘Greenback’ against its peers.
Canadian Dollar (CAD) underpinned by rising oil prices
The crude-sensitive Canadian Dollar (CAD) remained underpinned yesterday by continually climbing oil prices.
Crude prices are likely remain the primary catalyst of movement for the ‘Loonie’ today. Should prices continue to climb, CAD may remain afloat.
Data Releases
Feb 16th 17:00 GBP Retail Sales (Jan) 1.5%
Feb 16th 18:45 EUR ECB Schnabel Speech
Feb 16th 23:30 USD PPI (Jan) 0.1%
Feb 16th 01:00 USD Michigan Consumer Sentiment (Feb) 80