Pound News: Sterling Rally Continues Thanks to Inflation Uptick
The Pound continues to rally against most other major currencies today, as data continues to show that Britain’s economy has been fairly resilient to the coronavirus pandemic lately.
While the UK’s vaccination drive continues underpinning Sterling, a better-than-expected inflation reading of 0.7% boosted the Pound.
Coronavirus developments will continue to drive the Pound tomorrow, as investors await Friday’s slew of key UK data, including retail sales, and manufacturing and service PMIs.
Euro News: Euro Struggles despite Strong Eurozone Data
Yesterday saw the publication of better-than-expected Eurozone GDP figures and a surprise jump in German economic sentiment, the highest level for five months.
Despite this yesterday’s strong data, the Euro has been unable to recover against the Pound as GBP/EUR hit a new ten-month high today. The single currency’s losses have been largely driven by a rebound in the US Dollar due to the negative correlation in EUR/USD.
Tomorrow will be fairly quiet for Eurozone data, with more notable stats due on Friday. Until then the Euro will be driven more by strength in rivals like the Pound and US Dollar.
US Dollar News: Jump in US Retail Sales Boosts US Dollar
The US Dollar had been tumbling for most of the past week, until yesterday’s stronger-than-expected US manufacturing data and rising US Treasury yields boosted USD exchange rates.
The US Dollar added to its gains today as retail sales unexpectedly jumped 5.3% in January, far higher than the 1% expected.
The US Dollar’s movement will likely be driven by shifting market sentiment and rising Treasury yields ahead of tomorrow’s initial jobless claims, where another poor reading could cause USD volatility.
Canadian Dollar News: Higher Oil Expectations Keep CAD from Further Losses
The Canadian Dollar is weaker today, amid a rebound in the US Dollar and a dip in demand for trade-correlated currencies.
However, oil forecasters continue to predict higher demand amid supply issues. As oil prices rise further, investors are hesitant to sell the oil-correlated Canadian Dollar too much.
Some Canadian job stats from ADP could support CAD if they impress tomorrow. Developments in Canada’s coronavirus situation and oil price movements will also continue to be watched by Canadian Dollar traders.
Australian Dollar News: Risk-Off Dip May Prove Temporary if Employment Rate Impresses
The Australian Dollar was limited today, but the currency’s outlook is gradually improving overall. Today’s losses are due more to a brief risk-off movement in markets than any domestic Australian Dollar weakness.
Key Australian job market data will be published tomorrow though. If it beats expectations, Australia’s economic optimism could improve and AUD may be more likely to see a surge in demand.
Thursday, 18th February
00:30 Australian Job Market Report
13:30 Canadian ADP Employment Change
13:30 US Jobless Claims
13:30 US Building Permits and Housing Starts
15:00 Eurozone Consumer Confidence