Pound News: Sterling Remains Broadly Appealing on Vaccination Success
Britain’s relative success in rolling out vaccinations for the coronavirus continues to keep the Pound a broadly appealing currency. Economists are also showing more optimism in the UK’s recovery outlook, which is only boosting demand for Sterling.
No notable UK data is due for publication tomorrow. However, Friday’s slew of UK economic data releases, including industrial production and GDP growth figures, continues to draw closer.
Euro News: Euro Lacks Direction ahead of European Central Bank (ECB)
Strength in the Euro’s rivals the Pound and US Dollar, combined with the Eurozone’s mixed coronavirus recovery outlook, are keeping the Euro pressured today.
Tomorrow will likely be the most influential session of the week for the Euro as the European Central Bank (ECB) holds its March policy decision. If the bank takes a more optimistic tone on the Eurozone’s recovery outlook, the Euro could see stronger demand.
US Dollar News: US Dollar Continues to Advance despite Overnight Pause
The US Dollar rally that has been going since last week saw slight pause overnight. The US currency slipped from its best levels due to a drop in US Treasury yields.
While the US Dollar is now sliding against a resilient Pound, it has been able to hold this week’s gains against its weaker rival the Euro and is advancing again this morning.
This afternoon’s publication of February’s consumer price index (CPI) could encourage the US Dollar to strengthen as forecasts indicate a jump in inflation to 1.7%, which will likely push Treasury yields higher and in turn USD exchange rates.
US jobless claims results and JOLTs job opening stats are due for publication tomorrow. If they indicate more strength in the US job market, the US Dollar is more likely to keep trending strongly.
Canadian Dollar News: CAD Jittery as Markets Await Bank of Canada (BoC)
The Canadian Dollar fell from its best levels against stronger rivals like the Pound today. Investors were hesitant to keep buying the Canadian Dollar ahead of today’s upcoming Bank of Canada (BoC) policy decision.
Reaction to the bank’s decision will likely drive CAD until the end of the week, when key Canadian job market data is due. If the bank is more optimistic on Canada’s coronavirus outlook, the Canadian Dollar could become more resilient.
Australian Dollar News: RBA Governor Pours Cold Water on Rate Hike Speculation
The Australian Dollar was weaker today, after comments from Reserve Bank of Australia (RBA) Governor Philip Lowe talked down speculation of a potential rate hike from the bank. He said a rate hike was unlikely until around 2024, which cast a dovish cloud over AUD.
Australian consumer inflation expectations and home sales statistics are due for publication tomorrow. These may not influence AUD too much though, and the focus will likely remain on the overall market mood.
Thursday 11th March
00:00 Australian Consumer Inflation Expectations
04:00 Australian HIA New Home Sales
12:45 European Central Bank (ECB) Policy Decision
13:30 ECB Policy Decision
13:30 US Jobless Claims
15:00 US JOLTs Job Openings