- with readers working within the Oil & Gas industries
Pound (GBP) mixed in absence of data
An ongoing lack of UK data saw the pound (GBP) trade in a wide range yesterday.
Sterling was also mixed amid the uncertainty around the impact of the current Middle East crisis, which could affect UK growth, interest rates, and government debt.
Looking ahead, Bank of England (BoE) Governor Andrew Bailey is due to speak this morning. If he suggests that the recent spike in oil prices could deter the bank from cutting interest rates again soon, Sterling could climb.
Euro (EUR) slips as USD strengthens
The euro (EUR) weakened yesterday as EUR suffered from its strong inverse relationship with the recovering US dollar (USD).
In addition, a fresh rise in energy prices weighed on the common currency, amid fears of how an energy shock could harm the Eurozone economy.
With Eurozone economic data thin on the ground today, EUR could be influenced primarily by its negative correlation with USD and wider market trends.
US dollar (USD) firms as sentiment sours
The US dollar rose yesterday as signs of intensifying conflict in the US-Israeli war on Iran soured the market mood.
In addition, the latest US consumer price index showed that inflation remained sticky in February, leading to a slight trimming of Federal Reserve interest rate cut bets.
Aside from the latest initial jobless claims figure, global risk sentiment could drive USD today. Developments in the Middle East could determine the market mood.
Canadian dollar (CAD) mixed as oil wavers
The crude-linked Canadian dollar (CAD) was mixed yesterday as choppy oil prices saw the currency waver.
With market-moving Canadian data in short supply today, CAD could trade on oil prices once again. Any further volatility could see the ‘loonie’ trade without a clear direction.
Australian dollar (AUD) stalls amid anxious trade
The Australian dollar (AUD) wavered overnight, unable to push past recent highs as a risk-off mood dampened AUD demand.
New Zealand dollar (NZD) shored up by RBNZ bets
The New Zealand dollar (NZD) also fluctuated during the Asian trading session, although it posted modest gains against some peers amid expectations that inflation risks could prompt the Reserve Bank of New Zealand (RBNZ) to hike interest rates later in the year.
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