Pound News: Sterling Firms as UK Restriction Easing Outlined
The Pound held its ground today as the UK government outlined plans to ease coronavirus restrictions over the coming months.
GBP exchange rates continue to hold highs against the Euro and US Dollar as optimism over the UK recovery builds.
Tomorrow will see the publication of the UK’s December job market report. It is the most influential UK data of the week and could impact the country’s economic outlook if it surprises investors.
Euro News: Forecast Beating German Confidence Stats Boost Eurozone Outlook
Today saw the publication of Ifo’s latest German business confidence results. The report came in notably above forecasts in every print, reflecting higher optimism in the Eurozone’s biggest economy.
However, continued uncertainty over the Eurozone’s coronavirus situation and vaccine rollout limited the Euro’s appeal.
Eurozone inflation data from January will be published tomorrow, which if it rises in line with expectation at 0.9%, up from -0.3%, could support EUR exchange rates.
US Dollar News: Market Mood Continues to Dampen USD
The US Dollar struggled during today’s session. Higher market expectations for global recovery from the coronavirus pandemic, as well as hopes for reflation in major economies, are making investors more willing to take risks, weighing on the safe-haven US Dollar.
Manufacturing data from Richmond Fed and a speech from Fed Chairman Jerome Powell could cause US Dollar movement tomorrow. Aside from that, shifts in market sentiment will remain the focus.
Canadian Dollar News: Strong Commodity Prices Support CAD
As prices of commodities have been rising on hopes for global reflation and demand in recent sessions, the Canadian Dollar has been strengthening.
Its appeal has been only slightly dented by weakness in the US Dollar, due to the correlation the currencies share.
The Canadian Dollar will continue to be driven by shifts in market sentiment in the coming sessions. A speech from Bank of Canada (BoC) Governor Tiff Macklem tomorrow could also cause some CAD movement.
Australian Dollar News: ‘Aussie’ Surges on Market’s Reflation Hopes
Hopes for rises in global price pressures and commodity demand have caused central bank tightening and trade to strengthen since Friday. This is making the risk and trade-correlated Australian Dollar one of the more appealing major currencies on markets at the moment.
The Australian Dollar is likely to remain appealing so long as this reflation focus persists. Australian Dollar investors are also awaiting Wednesday’s Australian wage prices report.
Tuesday, 23rd February
07:00 UK Job Market Report
10:00 Eurozone Inflation Rate
11:00 UK CBI Distributive Trades
15:00 Fed Chair Powell Testimony
15:00 US Richmond Fed Manufacturing Index
17:30 BoC Governor Macklem Speech