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Lingering Coronavirus Fear and Strong US Data Leaves USD King

Pound News: Sterling Steadies after Week of Revived Hard Brexit Jitters

The Pound rounded off a week of volatility and hard Brexit jitters by steadying slightly on Friday. Amid a lack of fresh data or Brexit news, investors adjusted positions and awaited the coming week’s data.

All of this week’s notable UK data will be published tomorrow. This leaves today’s Pound movement to be driven by any Brexit developments or speculation from the weekend.

 

Euro News: Shocking German Production Report Knocks Euro Support

A combination of US Dollar strength and poor German data left the Euro tumbling towards the end of last week. Germany’s latest industrial production results printed the worst contraction in a decade, worsening market concerns about the Eurozone’s economic outlook.

No notable Eurozone data is due until later in the week. This means the Euro is likely to be driven by strength in rivals like the Pound and US Dollar for the coming sessions.

 

US Dollar News: Safe Haven Demand and US Data Keeps USD Strong

The US Dollar ended up being one of the more appealing major currencies once again last week. Persisting coronavirus jitters kept investors buying it as a safe haven currency, and Friday’s key US Non-Farm Payroll report printed much stronger than expected, further boosting USD demand.

US consumer inflation expectations will be published today. However, the US outlook is strong and this data is unlikely to be particularly influential, leaving the US Dollar to react more to developments in risk-sentiment.

 

Canadian Dollar News: CAD Ends Week on a Strong Note

The Canadian Dollar’s appeal was limited by weakness in oil prices for most of last week. However, strong Canadian data ultimately meant that Bank of Canada (BoC) interest rate cut speculation was low and kept the Canadian Dollar strong. Friday’s strong Canadian job market report helped CAD to end the week nearer its best levels versus Sterling.

Canadian housing data is due for publication today. Unless these stats are highly surprising though, Canadian Dollar movement is more likely to be driven by shifts in oil prices and risk-sentiment.

 

Australian Dollar News: ‘Aussie’ Hit by More Cautious RBA

Friday saw the Reserve Bank of Australia (RBA) cut its short-term growth forecasts, which hit the Australian Dollar towards the end of last week. AUD was also weakened slightly by the rising coronavirus death toll, leaving markets hesitant to take too many risks.

Australian Dollar investors are likely to react to weekend coronavirus developments today, as investors await tomorrow’s Australian business confidence data from NAB.

 

Upcoming Data

Monday, 10th February

13:15    Canadian Housing Starts

13:30    Canadian Building Permits

16:00    US Consumer Inflation Expectations

 

James Spurway
Director of Sales and Dealing

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