Pound News: UK Vaccine Optimism Persists
The Pound remains one of the more appealing major currencies today as optimism continues over the UK’s coronavirus rollout.
GBP exchange rates received further support from better-than-expected manufacturing PMI data, which indicated growth in the sector.
Ahead of the final UK services PMI for January on Wednesday, the UK’s vaccine rollout and falling coronavirus figures will likely drive movement in the Pound.
Euro News: Sharp Fall in German Retail Sales Weighs on EUR
The Euro weakened this morning following an unexpectedly sharp -9.6% fall in German retail sales in December, much worse than the -2.6% forecast.
The Euro remained unappealing overall, amid concerns over the EU’s difficulty in rolling out coronavirus vaccination programs across the Eurozone.
More resilience in the Pound and US Dollar have also been weighing on the Euro.
Tuesday’s session will see the publication of Eurozone growth rate data from Q4 2020, which will likely weigh on the Euro if the reading confirms the -1% forecast.
US Dollar News: Coronavirus Uncertainty Keeping Safe-Haven US Dollar Appealing
The safe-haven US Dollar remains appealing today, avoiding losses against rivals the Pound and Euro. Investors are still cautious amid high global coronavirus infection rates and uncertainty over vaccine rollouts.
Concerns that the US Joe Biden administration could be pressured into downsizing its stimulus bill is also boosting the safe-haven US Dollar.
US IBD/TIPP economic optimism data is due tomorrow. This is likely to be overshadowed by safe-haven demand and more influential US data due later in the week.
Canadian Dollar News: Risk-Off Trade Keeps CAD Unappealing
Despite strong Canadian data at the end of last week, the risk and trade-correlated Canadian Dollar remains unappealing today. Investors are hesitant to take risks amid global coronavirus vaccine concerns and volatile markets.
Rising prices of oil, Canada’s biggest export, have not been enough to keep the Canadian Dollar appealing.
No notable Canadian data is due to be published until Friday, which means the Canadian Dollar’s movement will be driven more by market sentiment and oil prices.
Australian Dollar News: ‘Aussie’ Volatile ahead of RBA
The risk-sensitive Australian Dollar saw jittery movement today amid coronavirus uncertainties and anticipation for tomorrow’s upcoming Reserve Bank of Australia (RBA) decision.
The RBA will hold its February policy decision during Tuesday’s Asian session. If the RBA is more dovish than expected on Australia’s outlook, the Australian Dollar could shed more of its recent strength.
Tuesday, 2nd February
03:30 RBA Policy Decision
07:45 French Inflation Rate
10:00 Eurozone Growth Rate
15:00 US IBD/TIPP Economic Optimism