Pound News: UK Job Market Report Leads to Pound Rebound
The Pound finally found some solid support yesterday, as UK job market data beat expectations. However, as Bank of England (BoE) interest rate cut bets persist the Pound’s potential for gains was limited.
Today’s UK data will be less significant. The CBI’s factory and retail stats could cause some Pound movement, but investors may prefer to await Friday’s key PMI projections before making more big moves on the British currency.
Euro News: Jump in Economic Sentiment Slows EUR Losses
The Euro held its ground better against a strong Pound and US Dollar yesterday, thanks to some supportive Eurozone data. ZEW’s German and Eurozone economic sentiment survey results came in well above expectations in every notable print, boosting hopes of a Eurozone economic recovery.
Reaction to this morning’s French business confidence data is likely to be limited, with Eurozone investors highly anticipating tomorrow’s European Central Bank (ECB) policy decision.
US Dollar News: USD Runs Out of Steam as Rivals Strengthen
The US Dollar’s rebound from last week ran out of steam yesterday. Concerns about a China virus outbreak led to higher demand for the US Dollar’s rival, the safe haven Japanese Yen (JPY). This and a more resilient Euro left the US Dollar weaker.
US housing data and national activity data from Chicago Fed could cause US Dollar movement today, as could developments in global safe haven demand.
Canadian Dollar News: CAD Jittery as Manufacturing Weakens Ahead of BoC Decision
The Canadian Dollar continued to slide ahead of today’s anticipated Bank of Canada (BoC) policy decision. Concerns about a China virus outbreak, as well as yesterday’s weaker than expected Canadian manufacturing sales results, both left Canadian Dollar investors less optimistic.
Today will be the biggest session of the week for CAD investors. If Canada’s December inflation rate or BoC policy decision surprise investors, the Canadian Dollar could see a big shift in direction.
Australian Dollar News: Global Crises Jitters Hit AUD Hardest
Due to Australia’s close relationship with China’s economy, the Australian Dollar was hit by concerns of a coronavirus in China causing economic damage. This, combined with fears about the lasting Australian bushfire crisis, is keeping AUD among the worst performing major currencies this week.
Reaction to Australia’s latest consumer confidence data from Westpac is likely to drive Australian Dollar movement today, as well as any further developments in the virus and bushfire issues.
Wednesday, 22nd January
Australian Westpac Consumer Confidence
07:45 French Business Confidence
11:00 UK CBI Business Optimism
11:00 UK CBI Industrial Trends Orders
13:30 US Chicago Fed National Activity Index
13:30 Canadian Inflation Rate
13:30 Canadian Wholesale Sales
15:00 Bank of Canada Policy Decision
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