Pound News: Sterling Jumps after Bank of England (BoE) Decision
Following weeks of speculation that the Bank of England (BoE) could cut UK interest rates, the bank voted to leave rates frozen yesterday. The bank left the door open for potential rate cuts if Britain’s economy did not improve, but showed optimism that Britain’s economy would rebound.
Britain will finally leave the EU today, but as Brexit day finally arrives it seems the event itself may not impact the Pound much. Returning Brexit uncertainties could weigh on the Pound though.
Euro News: Eurozone Data Supports EUR, Limits Losses
While the Pound to Euro exchange rate surged yesterday, the Euro was one of the Pound’s more resilient rivals. Stronger than expected Eurozone economic confidence, as well as an unexpected improvement in the Eurozone’s unemployment rate, both supported the Euro throughout the day.
A slew of the week’s most influential Eurozone ecostats will be published today. If German retail sales or Eurozone growth or inflation beat expectations, the Euro could see end the week on a stronger note.
US Dollar News: USD Supported despite Slowing US Growth and Fed Caution
The Federal Reserve expressed caution about the global economy and the potential of the coronavirus outbreak causing economic damage on Wednesday night. Yesterday’s US data also showed that US growth had missed government targets. Despite this, the US Dollar remained appealing as a safe haven currency throughout the day.
US Personal Consumption Expenditure (PCE) inflation data will be published today. If the data falls short, it could cause Federal Reserve rate cut bets to rise and this could weaken the US Dollar.
Canadian Dollar News: Tumbling Oil Prices Keep CAD under Pressure
Prices of oil, Canada’s most lucrative commodity, have seen days of weakness as markets remain concerned with the Chinese coronavirus outbreak. Canada’s latest average weekly earnings data slowed from the previous print, overall making it easier for a strong Pound to sustain major gains against the Canadian Dollar.
This week’s most notable Canadian data will be published today. If Canada’s November growth rate beats forecasts, Bank of Canada (BoC) interest rate cut speculation could soften and boost CAD demand.
Australian Dollar News: Coronavirus Fear Keeping ‘Aussie’ Broadly Unappealing
The Australian Dollar was once again one of the market’s weakest major currencies yesterday. Often used as a proxy for Chinese economic sentiment, concerns about China’s coronavirus outbreak are hitting AUD especially hard. In fact, AUD has been one of this week’s worst performing majors even though Australian data has been strong.
Australian PPI and private sector growth is unlikely to influence AUD much today. Instead, Australian Dollar investors will remain focused on coronavirus and global growth developments through the end of the week.
Friday, 31st January
00:01 UK GfK Consumer Confidence
06:30 French Growth Rate
07:00 German Retail Sales
07:45 French Inflation Rate
10:00 Eurozone Growth Rate
10:00 Eurozone Inflation Rate
13:30 Canadian Growth Rate
13:30 US Personal Consumption Expenditure (PCE) Inflation Rate
15:00 US Michigan Consumer Sentiment Survey
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