US Dollar Weakens as Federal Reserve Rate Hike Speculation Cools

Pound News: Sterling Struggles to Mount Recovery after Wednesday’s BoE Shock

News that Bank of England (BoE) Chief Economist Andy Haldane would step down from his role in the summer came as a shock to investors yesterday. The announcement led to Sterling was slipping amid speculation that his successor could be comparatively dovish.

However, analysts believe this won’t change Sterling’s outlook too much, allowing the Pound to avoided significant losses.

There will be little notable UK data due for publication until next week, with UK coronavirus developments driving Sterling movement as ‘mix and match’ vaccine trials are expanded and fears grow over a coronavirus variant in London.

Euro News: Mixed Eurozone Data Keeps EUR Limited

Demand for the Euro has benefitted from weakness in rivals like the Pound and US Dollar over the past week. However the Euro is struggling to capitalise and advance higher, due to mixed data from the Eurozone.

Today’s Eurozone industrial production report fell short in its yearly print, but the monthly figure was a little better than expected.

German and Eurozone inflation data could cause some Euro movement through the rest of the week, while weakness in the US Dollar could provide the Euro support due to the negative correlation in the pairing.

US Dollar News: USD Tumbles as US Inflation Report Fails to Influence US Price Pressure Outlook

Speculation that US inflation data could reveal a surge in price pressures kept the US Dollar strong up until yesterday’s US inflation rate report. However, as the data was only a little better than expected, it was perceived as showing little sign of surging US price pressures.

As a result, the US Dollar has weakened and Fed interest rate hike bets are fading.

More key US data is due in the coming sessions though, with impressive US retail sales figures tomorrow potentially boosting market demand for the US Dollar if it impresses.

Canadian Dollar News: CAD Benefits from Rival Weakness but Struggles Continue

The Canadian Dollar has been benefitting from US economic optimism combined with US Dollar weakness this week, while stronger prices of oil also supported CAD. GBP/CAD is making gains though as the Canadian Dollar’s strength runs out of steam.

Canadian employment data from ADP and manufacturing sales data will be published tomorrow. More strong Canadian data could make it easier for CAD to keep trending near its recent best levels.

Australian Dollar News: ‘Aussie’ Surges as US Dollar Tumbles

Tuesday’s US inflation rate report ultimately dampened Federal Reserve interest rate hike bets, which made investors more willing to take risks in higher-yielding currencies. As the US Dollar tumbled, the Australian Dollar capitalised on this movement and is advancing today.

This week’s most influential Australian data, March’s job market report, will be published tomorrow and has the potential to considerably boost AUD demand if it impresses and shows the unemployment rate dropped to 5.7% as forecast in March.

Upcoming Data

Thursday 15th April

02:30    Australian Job Market Report

07:00    German Inflation Rate

07:45    French Inflation Rate

13:30    Canadian ADP Employment Change

13:30    Canadian Manufacturing Sales

13:30    US Retail Sales

14:15    US Manufacturing and Industrial Production

15:00    US Business Inventories