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Risk Currencies Up Despite Returning Brexit Jitters and US Dollar Strength

Pound News: Brexit Fears Flare Up with One Week to go

The EU’s current Brexit date is still set for the 12th of April – a week from today. With the EU unsure over whether to offer another extension and UK Parliament still unable to rally around a way to resolve their differences, no-deal jitters have returned.

Yesterday saw the House of Lords debate a bill to avoid a no-deal outcome for Brexit, while the House of Commons was closed early due to a water leak. News that European Council President Donald Tusk would push the EU to allow the UK a flexible extension offered the Pound some support this morning.

UK Labour productivity data will be published today, but with just a week until the Brexit date the Pound is likely to focus on political news until the end of the week, as well as for most of next week.

 

Euro News: German Factory Data Continues to Paint Gloomy Picture

While some of this week’s Eurozone data has been optimistic, such as Eurozone services and retail sales results published on Wednesday, it has not been enough to make investors more convinced that the Eurozone’s economic outlook is improving.

Notably, yesterday saw the publication of Germany’s February factory orders results, which printed a shocking contraction of -4.2% rather than rebounding slightly as expected. German construction rose slightly but this had no notable impact on the Euro.

For Euro investors, reaction to this morning’s German industrial production stats will round off the week. As concerns about German and Eurozone economic activity persist, investors will be awaiting next week’s German trade balance data.

 

US Dollar News: US Jobless Claims Data Gives USD a Pre-NFP Boost

Investors became more anxious about today’s upcoming US Non-Farm Payroll report yesterday, as the latest US jobless claims stats indicated that less people were signing on for jobless benefits than expected last week. This gave the US Dollar some stronger support.

The number of Americans signing on fell to just 202k, down from the previous figure of 203k. This made it the lowest number of people looking for jobs since 1969, and bolstered market hopes about the strength of the US job market.

As a highly influential report that is closely watched by the Federal Reserve, this afternoon’s US Non-Farm Payroll report has the potential to cause some late-week movement in the US Dollar.

 

Canadian Dollar News: Ivey PMI Helps Boost CAD amid Risk-Sentiment

Market demand for riskier trade-correlated currencies like the Canadian Dollar has been a little stronger in recent sessions, thanks to market hopes that the US and China are getting closer to reaching an agreement on trade.

On top of this, the Canadian Dollar has been more appealing due to a stronger than expected Canadian Ivey PMI from March, as well as resilient prices of oil, Canada’s biggest commodity export.

This week’s most influential Canadian data will be published today. Following last week’s strong Canadian growth stats, the Canadian Dollar could become even more appealing if today’s upcoming Canadian job market data impresses.

 

Australian Dollar News: Australian Data Continues to Support AUD Demand

Investors continued to buy the Australian Dollar yesterday despite a lack of fresh supportive Australian news. The strong Australian data seen in the middle of the week continues to support the Australian Dollar, as Reserve Bank of Australia (RBA) interest rate cut bets lighten.

On top of support from Australian data, the Australian Dollar has also been benefitting from signs that the US and China could be closing in on a trade deal, though uncertainties remain.

Australian Dollar investors will be reacting to Australian construction data today, as well as reacting to any fresh US-China trade developments or other shifts in risk-sentiment.

 

Upcoming Data

 

Friday, 5th April

07:00    German Industrial Production

07:45    French Trade Balance

09:30    UK Labour Productivity

13:30    Canadian Job Market Report

13:30    US Non-Farm Payroll Report

 

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To keep up to date with the Euro, visit the Euro blog in our Currency News section.

 

David Worthington

Associate Director

daw@fcgworld.co.uk

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