Pound News: Sterling Gives Up Early Gains
While the UK government’s plans to gradually ease coronavirus pandemic restrictions showed more caution than markets hoped, they still pushed the Pound higher early in the European session.
GBP exchange rates later gave up their early gains as its bullish run faded, with some analysts suggesting the Pound had entered overbought territory.
With no notable UK data is due for publication tomorrow, developments in Britain’s coronavirus situation and comments from Bank of England (BoE) officials will remain the focus for now.
Euro News: Coronavirus Woes Continue to Weigh on the Eurozone Outlook
Demand for the Euro has been mixed lately, driven more by strength in rivals like the Pound and US Dollar.
Continued difficulty with the Eurozone’s vaccine situation, combined with an extended lockdown in Germany, are keeping the Euro unappealing.
Tomorrow will see the publication of Eurozone confidence data from February, and German confidence for March. Stronger-than-expected data may boost hopes that the Eurozone outlook will recover.
US Dollar News: Dovish Powell Pressures USD before Rebound
The US Dollar saw fresh reasons for losses as its selloff extended this week. Last night, Federal Reserve Chairman Jerome Powell showed a more dovish stance on the US outlook than expected.
He said that monetary policy would remain loose and suggested inflation would not see a meaningful surge in the US.
However, the US Dollar later recovered as US Treasury yields began to rise again, allowing USD to recover its losses.
Tomorrow will see the publication of the latest US growth rate results. If these impress investors they could boost USD demand, but Powell’s dovishness could limit the US Dollar from rising too much.
Canadian Dollar News: CAD Boosted by Oil Exports to the US
Even though commodity prices are rising this week, the Pound to Canadian Dollar exchange rate climbed at the start of the European session.
However, the Canadian Dollar later strengthened in the session as the commodity-correlated ‘Loonie’ benefited from rising Canadian oil exports to the US.
Tomorrow will see the publication of Canada’s weekly wage report, although the Canadian Dollar is more likely to be influenced by shifts in commodity prices and market sentiment.
Australian Dollar News: AUD Holds Ground
The Australian Dollar firmed during Wednesday’s session as optimism over global recovery from the coronavirus pandemic, as well as Australia’s own economic resilience, are keeping AUD one of the most appealing major currencies.
The Australian Dollar will continue to be driven by market sentiment, as tomorrow’s Australian private capital expenditure data is unlikely to be too influential.
Thursday, 25th February
07:00 German GfK Consumer Confidence
07:45 French Consumer Confidence
10:00 Eurozone Confidence Report
13:30 Canadian Average Weekly Earnings
13:30 US Durable Goods Orders
13:30 US Growth Rate
15:00 US Pending Home Sales
16:00 US Kansas Fed Manufacturing Index