Pound (GBP) Muted amid ‘Partygate’ Report
The Pound (GBP) was mixed yesterday amid a lack of UK data and as investors awaited Sue Gray’s ‘update’ on her investigation.
Gray’s findings were severely limited by the ongoing Met investigation, which meant that movement in the Pound wasn’t as dramatic as it may have been had the full report been published.
The latest consumer credit figures could affect Sterling this morning. Economists expect consumer credit to have edged lower in December. Any surprises could impact GBP exchange rates.
Euro (EUR) Gains on USD Weakness
The Euro (EUR) managed to firm against many of its rivals yesterday as the single currency enjoyed its negative correlation to a weaker US Dollar (USD).
A risk-on market mood may have limited EUR’s gains, however, along with a slowdown in Eurozone GDP.
Analysts expect the Eurozone’s unemployment rate to have dropped for an eighth consecutive month, which could support the single currency later this morning.
US Dollar (USD) Softens amid Risk-On Mood
The US Dollar was fairly subdued yesterday, edging lower or wavering against its rivals as a bullish market mood dampened the appeal of the safe-haven currency.
However, the Federal Reserve’s hawkish hold last week still provided a tailwind, preventing serious losses.
USD investors will be looking ahead to the US ISM manufacturing PMI and JOLTs job openings reports later this afternoon.
Canadian Dollar (CAD) Enjoys End-of-Session Rally
The oil-sensitive Canadian Dollar (CAD) softened through most of yesterday’s trade amid a modest pullback in WTI crude. However, CAD bounced back at the end of the European session, with no clear catalyst for the movement.
Canada’s GDP data for November could influence CAD exchange rates today. Will a slowdown in growth dent the ‘Loonie’?
Australian Dollar (AUD) See-Saws following RBA Decision
The Australian Dollar (AUD) initially dropped overnight as the Reserve Bank of Australia’s (RBA) forward guidance sounded less hawkish than AUD bulls had hoped. However, the ‘Aussie’ regained these losses, perhaps boosted by the end to quantitative easing.
New Zealand Dollar (NZD) Ticks Higher amid Improving Market Mood
The New Zealand Dollar (NZD) edged higher in overnight trade as a slight improvement in market mood supported the risk-sensitive ‘Kiwi’.
Data Releases
08:55 EUR DE Unemployment Change (Jan)
08:55 EUR DE Markit Manufacturing PMI Final (Jan)
08:55 EUR DE Unemployment Rate (Jan)
09:00 EUR Markit Manufacturing PMI Final (Jan)
09:30 GBP BoE Consumer Credit (Dec)
10:00 EUR Unemployment Rate (Dec)
13:30 CAD GDP (Nov)
15:00 USD ISM Manufacturing PMI (Jan)
15:00 USD JOLTs Job Openings (Dec)
21:45 NZD Unemployment Rate (Q4)
21:45 NZD Employment Change (Q4)