Pound News: UK and EU Brexit Positions Remain at Odds
Comments from Stefaan de Rynck, a key adviser to chief EU negotiator Michel Barnier, put fresh pressure on Pound (GBP) exchange rates.
As De Rynck pushed back against Theresa May’s recent speech on Brexit this suggested that the two sides remain distinctly at odds, to the detriment of the Pound and UK economic outlook.
Unless there are signs that progress is being made towards a more amicable agreement GBP exchange rates are likely to remain on a weaker footing in the near term.
Euro News: Robust Retail PMIs Support Single Currency
Worries over the results of the Italian election eased on Tuesday, offering the Euro (EUR) the chance to push higher against many of its rivals.
A solid raft of Eurozone retail PMIs also helped to shore up EUR exchange rates, highlighting the resilience of consumer demand within the domestic economy.
With no change forecast for the finalised fourth quarter Eurozone gross domestic product the Euro could struggle to find further momentum today.
US Dollar News: Thawing Tensions on Korean Peninsula Dent USD Demand
A sharp contraction in US factory orders helped to erode the appeal of the US Dollar, denting confidence in the underlying health of the world’s largest economy.
USD exchange rates also came under pressure in the wake of reports that North Korea could be willing to discuss the possibility of denuclearisation, boosting global market confidence.
However, a solid showing from this afternoon’s ADP employment change figure may offer the US Dollar a fresh rallying point.
Canadian Dollar News: CAD Muted Ahead of Bank of Canada Policy Decision
February’s Ivey manufacturing PMI showed a surprisingly strong uptick, accelerating from 55.2 to 59.6.
This indicates that the Canadian manufacturing sector is continuing to enjoy robust growth, in spite of wider concerns over the impact of the Trump administration’s increasingly protectionist policies.
Even so, if the Bank of Canada (BOC) proves more dovish in outlook at its March policy meeting the Canadian Dollar (CAD) is likely to slump once again.
Australian Dollar News: RBA Sounds Optimistic Note on Wage Growth
Unsurprisingly, the Reserve Bank of Australia (RBA) made little in the way of change at its latest policy meeting, keeping monetary policy on hold.
However, as policymakers expressed some optimism over the outlook for domestic wage growth, and the general sense of market risk appetite picked up, the Australian Dollar (AUD) trended higher.
Nevertheless, with investors still unconvinced by the underlying health of the Australian economy AUD exchange rates remain vulnerable.
Wednesday, 7 March
10:00 Eurozone Gross Domestic Product
13:15 US ADP Employment Change
15:00 Bank of Canada Rate Decision
21:00 New Zealand ANZ Truckometer Heavy
01442 892 069