Pound News: UK Vaccination Hopes Continue to Buoy Sterling
While Pound demand was a little softer earlier in the week, the Pound saw another jump in demand today. Optimism that UK’s economy will recover thanks to the rapid coronavirus vaccine rollout is keeping the Pound appealing.
Uncertainty over vaccine effectiveness and post-Brexit trade difficulties are keeping Sterling from its best levels against some rivals, however.
Reaction to any surprising comments from Bank of England (BoE) Governor Andrew Bailey this evening could cause Pound movement tomorrow. Failing that, vaccine news will drive the Pound until key UK growth data is published on Friday.
Euro News: EUR Sees Steady Trade amid Unsurprising Inflation Data
Today’s German inflation rate results confirmed forecast and showed that inflation in the Eurozone’s biggest economy was improving.
The Euro continues to make gains this week on weakness in the US Dollar due to the negative correlation in the EUR/USD exchange rate.
German wholesale prices data published tomorrow could drive limited movement in EUR exchange rates, although the strength of the US Dollar may drive more significant movement.
US Dollar News: Improved Market Sentiment Dampening USD
The US Dollar remains unappealing today as investors have been selling the currency from its highs all week, and today’s USD movement remains bearish.
Investors are selling the currency from recent highs due partially to improved market sentiment, meaning lower appetite for the safe-haven US Dollar.
US jobless claims data will be published tomorrow. Following last week’s disappointing US non-farm payrolls report, the US Dollar could find support if jobless claims lower and beat expectations.
Canadian Dollar News: Slipping Oil Prices Dent CAD
Prices of oil, Canada’s biggest export, have been slipping since yesterday. Concerns over the effectiveness of coronavirus vaccines against newer strains are weighing on oil market optimism, which is weighing on the Canadian Dollar as well.
No notable Canadian data is due tomorrow. This will leave the Canadian Dollar driven more by oil prices until Friday’s Canadian wholesale prices report is published.
Australian Dollar News: Strong Australian Data Offers AUD Modest Support
The Australian Dollar benefitted from December’s finalised building permits data today, which pointed towards some resilience in the construction sector.
AUD gains were limited, however, as unexpectedly negative Chinese inflation data dented market risk appetite.
Tomorrow’s Australian consumer inflation expectations data is unlikely to be too influential to AUD, with the Australian Dollar’s movement driven largely by shifts in market sentiment.
Thursday 11th February
00:00 Australian Consumer Inflation Expectations
07:00 German Wholesale Prices
13:30 US Jobless Claims
16:00 US Fed Monetary Policy Report