Pound News: UK Vaccine Optimism Persists but Sterling Rally Softens
The Pound is seeing mixed movement today, approaching new highs against the US Dollar but GBP/EUR is struggling. Sterling is holding its recent gains on optimism over Britain’s coronavirus vaccine rollouts, but the recent rally is slowing.
Fresh uncertainty in post-Brexit trade between the UK and EU, as well as concerns over the effectiveness of existing vaccines on newer coronavirus strains, are limiting the Pound.
This week’s key UK data is published on Friday, including fourth quarter UK GDP, which leaves the Pound driven by coronavirus and trade developments for most of the week.
Euro News: Euro Benefitting from Weaker Rivals
Coronavirus pandemic jitters and strength in the Pound and US Dollar last week limited the Euro’s appeal. However, as the Pound and US Dollar weaken again this week, investors are finding the Euro more appealing instead.
German inflation rate data from January published tomorrow could help support the Euro through tomorrow’s session.
US Dollar News: USD Slides on Retreating US Treasury Yields
The US Dollar recent recovery rally reversed on Tuesday, moving in line with US Treasury yields that retreated from Monday’s 11-month highs.
US inflation rate data published tomorrow and a speech from Federal Reserve Chairman Jerome Powell will likely drive more movement in USD exchange rates.
Canadian Dollar News: CAD Avoids Losses amid Strong Oil Prices
Resilience in prices of oil, Canada’s biggest export, are helping the Canadian Dollar to avoid losses this week, but demand for the Canadian Dollar is otherwise mixed.
Oil prices and domestic coronavirus developments will continue to influence CAD in the coming sessions amid a lack of notable Canadian data due until Friday.
Australian Dollar News: Australian Dollar Rebounding as Appetite Recovers
Investors are buying the Australian Dollar again this week, with fresh US Dollar losses, as well as resilient prices of iron ore, keeping the more risk and trade-correlated Australian Dollar buoyed.
Australian consumer confidence and building permits stats will be published tomorrow, while shifts in market sentiment could influence Australian Dollar movement tomorrow.
23:30 Australian Consumer Confidence
Wednesday 10th February
00:30 Australian Building Permits
07:00 German Inflation Rate
13:00 ECB President Lagarde Speech
13:30 US Inflation Rate
15:00 US Wholesale Inventories
17:00 BoE Governor Bailey Speech
19:00 Fed Chairman Powell Speech