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Sterling Bounces Back from Brexit Woes While US Dollar Sinks

 

Pound News: Pound Rebounds after Week of Brexit Uncertainties

Amid a lack of major developments yesterday, the Pound rebounded slightly as investors digested last week’s news and prepared for the week ahead.

While last week’s news of a six-month Brexit delay left investors concerned about further months of economic uncertainty in Britain, some investors believed the Pound selloff to be overdone.

Hopes for a ‘softer’ Brexit are keeping Sterling buoyed, but no major political developments are expected this week. Investors are more likely to react to today’s UK job market report if it surprises.

 

Euro News: Hopes of Recovering Eurozone Activity Keep Euro Buoyed

Despite a lack of fresh supportive Eurozone data yesterday, the Euro was one of the day’s better performing major currencies and avoided big losses against the Pound.

Euro investors have been more hopeful that the Eurozone economy is recovering from its slowdown, amid stronger than expected data in recent sessions. Last week’s Eurozone industrial production stats were the latest figures to support this.

Eurozone data will continue to drive Euro movement this week, starting with today’s German and Eurozone economic sentiment figures from ZEW. If they beat expectations, the Euro may see stronger demand.

 

US Dollar News: USD Remains Weak amid Federal Reserve Dovishness

Since last week’s Federal Reserve meeting minutes report was published, investors have been less eager to buy the US Dollar as 2019 interest rate hike bets have all but faded.

Last Friday’s US confidence data fell short of expectations, while the US Empire Manufacturing Survey had some concerning aspects as well. While the index figure beat expectations, the outlook for the next six months hit its worst levels in over three years.

US data will remain in focus in the coming days, too. US industrial and manufacturing production stats will be published today, with key trade data due tomorrow.

 

Canadian Dollar News: CAD Lacks Drive Ahead of Upcoming Data

Last week saw a lack of notable Canadian data published, leaving the Canadian Dollar to be driven by shifts in strength of rivals and risk-sentiment throughout the week. The oil price has trended near 2019 highs recently and this has further supported CAD.

Yesterday’s Canadian new motor vehicle sales stats were slightly better than expected, but low-influence overall. Canadian Dollar movement is limited ahead of more influential data due in the coming days.

Today’s manufacturing sales stats could inspire CAD gains if they beat expectations, but tomorrow’s trade balance and inflation results are even more likely to be influential.

 

Australian Dollar News: AUD Sold from Highs Following Strong Week

A combination of strong Chinese data, weak US data, and solid Australian data left investors hungrier for risky trade-correlated currencies last week, and the Australian Dollar was one of the currencies that benefitted most from the risk-on movement throughout the week.

Yesterday, investors opted to sell the Australian Dollar from its best levels in profit-taking, in anticipation of some more influential news due later in the week.

Investors will be digesting this morning’s Reserve Bank of Australia (RBA) meeting minutes data this morning, and anticipating the key job market report due to be published on Thursday.

Upcoming Data

 

Tuesday, 16th April

02:30    RBA Meeting Minutes

09:30    UK Job Market Report

10:00    Eurozone Construction Output

10:00    German and Eurozone ZEW Economic Sentiment

14:15    US Manufacturing and Industrial Production

 

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

 

Joe Mayhew

Senior Currency Broker

Jam@fcgworld.co.uk

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