Pound News: UK Recovery Outlook from BoE’s Bailey Boosts Sterling
Following slightly more mixed movement from the Pound last week, the British currency found some support in Bank of England (BoE) comments this morning, although Sterling slipped again later in the day.
BoE Governor Andrew Bailey said his optimism around recovery continued to rise, with recent rises of financial market interest rates consistent with an improving economic outlook. His comments made markets more confident in recent Pound strength.
No notable UK data is due for publication tomorrow, leaving Pound investors anticipating Thursday’s Bank of England (BoE) policy decision.
Euro News: Euro Fails to Benefit from Market Mood
The Euro continues to be one of the less appealing major currencies on the market as investors appear more willing to buy rivals like the Pound or US Dollar, amid persisting uncertainty over how the Eurozone is handling the coronavirus pandemic.
Reports of the AstraZeneca vaccine being temporarily blocked from some key Eurozone nations, including the Netherlands today, are further dampening Euro appeal.
German and Eurozone sentiment stats from ZEW are due for publication tomorrow, which if they impress investors could offset some concerns about the Eurozone’s resilience amid the pandemic.
US Dollar News: USD Calms after Weeks of Volatile Movement
Last week saw investors sell the US Dollar from its best levels as a rebound rally came to an end, and has been steadying since.
Higher market optimism about global economic recovery from the coronavirus pandemic is limiting safe-haven demand, which is limiting US Dollar appeal as well, although US Treasury yields are limiting the US Dollar as they remain near recent highs.
US production and retail sales data from February are due tomorrow. However, amid anticipation for Wednesday’s Federal Reserve policy decision, investors may remain focused on the Fed for now.
Canadian Dollar News: Hopes for Bank of Canada (BoC) Optimism Keeping CAD Strong
The Canadian Dollar is one of the market’s most appealing major currencies today. Speculation that the Bank of Canada (BoC) could become more optimistic and may even tighten monetary policy soon are keeping CAD strong.
Canadian foreign securities data is due tomorrow, but unless something douses Bank of Canada optimism, the Canadian Dollar is likely to remain appealing.
Australian Dollar News: Risk-On Movement Keeping AUD Buoyed
The Pound was unable to climb much against the Australian Dollar today. As the Australian Dollar is a currency correlated to risk and trade-sentiment, it has been benefitting from higher market recovery hopes.
The Reserve Bank of Australia’s (RBA) latest meeting minutes will be published tomorrow. If the minutes are more hawkish than expected, the Australian Dollar could see stronger demand.
Tuesday, 16th March
00:30 RBA Meeting Minutes
07:45 French Inflation Rate
10:00 German and Eurozone ZEW Economic Sentient
12:30 US Retail Sales
13:15 US Industrial and Manufacturing Production
14:00 US Business Inventories