Pound News: Sterling Shrugs Off Hawkish Policymaker Commentary
Bank of England (BoE) policymaker Ian McCafferty adopted a rather hawkish outlook in comments on Tuesday, suggesting that he is likely to vote in favour of an imminent interest rate hike.
However, as McCafferty remains one of the most outspoken hawks on the Monetary Policy Committee (MPC) the ultimate impact of his words proved to be rather short-lived.
Further volatility is expected for the Pound (GBP) today on the back of the latest UK trade data and the NIESR gross domestic product estimate for the three months to March.
Euro News: Dovish Draghi Could Extend Single Currency Losses Today
Even though European Central Bank (ECB) policymaker Ewald Nowotny noted that the time has come for the normalisation of monetary policy this failed to encourage any particular Euro (EUR) demand.
With markets in a more risk hungry mood the appeal of the single currency remained rather limited, as the odds of any imminent shift in the ECB’s policy bias still look muted.
If ECB President Mario Draghi maintains a more dovish tone in comments later today the mood towards the Euro could sour further.
US Dollar News: Easing Trade Tensions Limit USD Exchange Rates
Even though the US producer price index data bettered forecast on Tuesday this was not enough to shore up US Dollar (USD) exchange rates.
Hopes that trade tensions between the US and China could continue to ease reduced demand for the safe-haven US Dollar, even in the face of this positive domestic data.
However, if the consumer price index prints positively this afternoon USD exchange rates could rally strongly, with the odds of more aggressive Federal Reserve monetary tightening increasing.
Canadian Dollar News: Oil Pushes Higher on Hopes of Extended OPEC Production Limit
Reports that Saudi Arabia intends to aim for a return to oil prices of US$80 per barrel encouraged hopes that the OPEC-led production limiting agreement will remain in place for longer.
With market risk appetite already strengthened this offered additional support to the commodity-correlated Canadian Dollar (CAD) yesterday.
A fresh uptick in US crude oil inventories could take the wind out of the Canadian Dollar’s sails, however, as the global oversupply glut persists.
Australian Dollar News: ‘Aussie’ Strengthens on NAB Business Confidence Survey
While the headline NAB business confidence index was a little disappointing this failed to have any particular negative impact on the Australian Dollar (AUD).
As the underlying details of the accompanying report point towards solid domestic growth in the months ahead this gave investors little reason to sell out of the ‘Aussie’.
Even so, if market risk appetite diminishes once again this could put AUD exchange rates under fresh pressure.
Wednesday, 11 April
09:30 UK Visible Trade Balance
12:00 UK NIESR Gross Domestic Product Estimate
12:00 European Central Bank President Mario Draghi Speaks
13:30 US Consumer Price Index
19:00 Federal Open Market Committee Meeting Minutes