Pound (GBP) Wavers as Markets Digest Sunak’s Support Package The Pound (GBP) experienced some volatility yesterday after Rishi Sunak a
Pound (GBP) Wavers as Markets Digest Sunak’s Support Package
The Pound (GBP) experienced some volatility yesterday after Rishi Sunak announced his economic support package to help households struggling with the cost-of-living crisis.
While the measures were widely well received, there seem to have been some concerns in the markets. The Confederation of British Industry (CBI) warned that the new windfall tax could hurt investment while also bemoaning the lack of support for British businesses. Some investors may also have been concerned about increased government borrowing.
In the absence of UK economic data today, Sterling could continue to trade on domestic issues.
Euro (EUR) Firms amid USD Weakness
The Euro (EUR) gained yesterday, despite thin trading conditions, as a positive mood in European equity markets lifted EUR investors’ spirits.
The single currency also benefitted from its negative correlation with the US Dollar (USD), which weakened throughout the day.
Notable Eurozone data remains thin on the ground today. As such, EUR may again trade on market mood and USD dynamics.
US Dollar (USD) Slips as Market Sentiment Improves
The US Dollar was on the defensive yesterday as a recovery in risk appetite weighed on the safe-haven currency.
In the afternoon, the US GDP growth rate showed a larger contraction than was previously estimated, adding to USD’s downside.
Some big data releases today could cause significant movement in the US Dollar. The Fed’s preferred measure of inflation – the core PCE price index – is forecast to ease. Will USD retreat as markets rein in rate hike bets?
Canadian Dollar (CAD) Firms as Crude Prices Rise
The oil-sensitive Canadian Dollar (CAD) climbed against many of its peers yesterday, despite retail sales unexpectedly stalling in March. The upside came courtesy of a $3 jump in the cost of crude.
With no market-moving Canadian data out today, oil prices could continue to drive movement in the ‘Loonie’.
Australian Dollar (AUD) Climbs on Retail Sales Rise
The Australian Dollar (AUD) strengthened overnight after Australian retail sales rose by 0.9%, as expected, representing the fourth consecutive month of strong sales growth.
New Zealand Dollar (NZD) Gains amid Cheery Trade
The New Zealand Dollar (NZD) also rose in overnight trade as an upbeat market mood boosted the risk-sensitive ‘Kiwi’.
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