Pound News: Investors Continue to Pull Away from Sterling as GBP Seen as Overvalued
The Pound continued to shed ground against major rivals including the Euro and US Dollar today. Amid speculation that other nations were accelerating coronavirus vaccine rollout, the UK’s position as a leading nation in the vaccine rollout is no longer the case, causing the Pound to weaken sharply.
The UK’s latest constriction PMI data beat forecasts, but had little impact on today’s Pound movement.
With this week’s UK data published, Sterling investors are looking ahead to next week’s UK growth rate data as well as the continued gradual reopening of Britain’s economy.
Euro News: Solid Eurozone Data Helps Euro Hold its Ground
Investors held their ground on this week’s Euro gains, despite a lack of upside surprises in the Eurozone outlook. Today’s German factory orders report showed a solid improvement over the previous print, as expected.
Weakening demand for rivals, the Pound and US Dollar, as well as hopes for a Eurozone recovery later this year, led to higher Euro demand.
German trade and industrial production data releases will round out the week for Eurozone data tomorrow. Developments around the Eurozone’s coronavirus pandemic recovery outlook will remain influential as well.
US Dollar News: USD Weaker as Fed Remains Dovish
The US Dollar weakened through Thursday’s session amid risk-on trade fuelled by the latest Federal Reserve meeting minutes which reiterated the bank’s dovish stance on monetary policy.
USD investors’ concerns on US inflation cooled, weakening the US Dollar as US Treasury yields retreated and market sentiment improved.
US wholesale inventories data is due for publication tomorrow, but shifts in market sentiment will likely be the main driver in USD in the coming sessions.
Canadian Dollar News: Pullback in Commodities Weakens CAD Demand
The Canadian Dollar has not been as strong as other major currencies this week. As the Canadian Dollar is often correlated to market trade sentiment, slightly weaker performance in commodities has left the Canadian Dollar less appealing.
This week’s most notable Canadian data is due to be published tomorrow, where stronger-than-expected Canadian job market data could help the Canadian Dollar to end the week on a strong note.
Australian Dollar News: AUD Pushes Higher As Market Sentiment Remains Strong
Weakness in the US Dollar, as well as coronavirus recovery hopes, kept the risk and trade-correlated Australian Dollar supported this week. The ‘Aussie’ has been little-influenced by recent Australian data and continues to climb against rivals like the Pound.
Some Australian services and building data will be published tomorrow. This, as well as potential shifts in market sentiment, could cause some late-week Australian Dollar movement.
Friday 9th April
02:30 Australian Building Permits
07:00 German Trade Balance
07:00 German Industrial Production
07:45 French Industrial Production
13:30 Canadian Job Market Report
15:00 US Wholesale Inventories