Pound (GBP) wobbles in absence of data
The pound (GBP) wavered at the end of last week as a lack of UK economic data left Sterling struggling to find a clear direction.
Meanwhile, ongoing speculation over when the Bank of England (BoE) could start cutting interest rates may also have contributed to the pound’s mixed movement.
UK data remains thin on the ground today, which may leave the pound wavering once again.
Euro (EUR) weakens amid ECB rate cut bets
The euro (EUR) fell across the board at the end of last week’s session amid ongoing bets that the European Central Bank (ECB) will be one of the first major banks to start cutting interest rates.
In addition, EUR’s strong negative correlation with the US dollar (USD) applied some pressure to the currency.
This afternoon, Germany’s latest consumer price index is due out. Could an uptick in German inflation lend EUR some support?
US dollar (USD) recovers as inflation beats forecasts
After a rather bruising week, the US dollar managed to regain ground on Friday thanks to a hotter-than-forecast core PCE price index.
The Federal Reserve’s preferred measure of inflation held steady at 2.8% in March, rather than easing to 2.6% as expected. This reignited the recent pullback in Fed rate cut bets, thereby boosting USD.
American data is absent from the calendar today. As a result, risk sentiment could drive the safe-haven currency. Could an upbeat mood see USD soften?
Canadian dollar (CAD) underpinned by stronger USD
The Canadian dollar (CAD) found support on Friday afternoon, thanks to CAD’s positive correlation with the recovering US dollar.
Today, oil prices could impact the crude-linked ‘loonie’. If prices continue to decline, CAD could follow suit.
Australian dollar (AUD) hits multi-week highs amid risk-on mood
The Australian dollar (AUD) strengthened overnight, hitting multi-week highs, amid a risk-on rally in markets.
New Zealand dollar (NZD) climbs as market sentiment improves
The New Zealand dollar (NZD) also rose in overnight trade as the upbeat market mood boosted the risk-sensitive ‘kiwi’.