Australian Dollar (AUD) Climbs amid RBA Rate Hike Bets
Thursday saw gains for the Australian Dollar (AUD). The risk-sensitive ‘Aussie’ benefitted from an upbeat market mood.
Increased market bets on further Reserve Bank of Australia (RBA) rate hikes also pushed AUD higher.
With no data releases today, the Australian Dollar could be affected by any shifts in risk appetite.
New Zealand Dollar (NZD) Pushed Higher by Upbeat Market Mood
The New Zealand Dollar (NZD) edged higher on Thursday. A positive market mood lent support to the risk-sensitive ‘Kiwi’.
NZD was also pushed higher by its positive correlation to the Australian Dollar.
The ‘Kiwi’ will see no significant data today. Movement in NZD could be driven by any changes in market mood.
Losses for Pound (GBP) Limited by Hawkish BoE Rhetoric
Brexit-related headwinds weighed on the Pound (GBP) on Thursday. GBP investors seemed disappointed that a deal on the Northern Ireland protocol – a post-Brexit UK-EU trade agreement – had not yet been reached.
Sterling was underpinned by hawkish comments from Bank of England (BoE) policymaker Catherine Mann, however. Mann advocated further interest rate rises.
Looking ahead, a speech from typically dovish BoE policymaker Silvana Tenreyro could weigh on GBP in overnight trade.
Euro (EUR) Falls as Russia Steps Up Attacks
Ongoing anxiety over the Russia-Ukraine conflict saw the Euro (EUR) slip on Thursday.
An upward revision to the Eurozone’s final core inflation rate underpinned EUR, however. January’s data pointed to further interest rate increases from the European Central Bank (ECB).
Today, a forecast slump in German fourth-quarter economic growth could dent confidence in EUR.
US Dollar (USD) Underpinned by Evidence of Tight Labour Market
The US Dollar (USD) dropped yesterday amid a healthier risk appetite. Worse-than-expected fourth-quarter GDP deepened the currency’s losses.
USD found some support from persistent Federal Reserve rate hike bets, however. Jobless claims on Thursday were lower than forecast, pointing to a tight labour market.
The US Dollar could benefit from further Fed rate hike bets today if data prints as forecast. The core PCE price index, the Fed’s preferred measure of inflation, is set to indicate that price pressures remain stubbornly high.
Canadian Dollar (CAD) Edges Higher amid Oil Price Rebound
An uptick in crude oil prices saw the commodity-linked Canadian Dollar (CAD) tick higher on Thursday.
A forecast cooldown in February’s business confidence index could weigh on the ‘Loonie’ today. Any drastic movements in oil prices could also prompt movement in CAD.
Data Calendar
Feb 24th 17:00 EUR German Gfk Consumer Confidence (Mar) -30.4
Feb 24th 17:00 EUR German GDP Growth Rate (Q4) -0.2%
Feb 24th 23:30 USD Core PCE Price Index (Jan) 4.3%
Feb 25th 01:15 USD Fed Mester Speech
Feb 25th 02:30 GBP BoE Tenreyro Speech