Pound Sterling (GBP)
The Pound has proven resilient today, which contrasts greatly to the earlier week’s heavy losses on the back of Brexit vagueness.
This rise in demand has come from statements by Bank of England (BoE) Governor Mark Carney, who said that the central bank’s 2017 forecast could be revised up, given the current strength in UK PMIs, among other results.
Friday morning will bring a speech from BoE official Michael Saunders, who may comment further on upgrading economic outlooks for 2017.
Interest in the Euro has been mixed today on account of major German data releases posting mixed results.
Although the full-year GDP figure rose from 1.7% to 1.9% in 2016, the government’s budget shrank slightly from 0.7% to 0.6%.
Elsewhere, industrial production across the Eurozone proved supportive by rising strongly on the month and the year.
US Dollar (USD)
After the first major US political event of the year, a pre-inauguration press conference by Donald Trump, the US Dollar has tanked heavily.
While some had hoped that Trump’s bombastic attitude might be tempered in the run-up to becoming President, last night’s display swiftly shattered these hopes.
As well as having to contain fresh allegations about sexual depravity, Trump also rankled the ethically-minded when he announced that his business empire would be turned over to his sons, to prevent ‘conflicts of interest’.
The wall-building agenda was still on the table, as was the plan for Mexico to pay for the gargantuan construction, in some shape or form.
Barring any Twitter outbursts from Trump today, the US Dollar is most likely to be moved by four Fed speeches that are expected over the afternoon.
Australian Dollar (AUD)
The Australian Dollar has risen across the board today, with the notable exception of a minor dip against the Canadian Dollar.
This rally for the ‘Aussie’ comes on the back of iron ore price news; despite expectations, the price of the commodity has continued climbing this week, shoring up AUD demand in the process.
The US Fed speeches out today could well have an impact on the Australian Dollar, given that they are likely to cover how likely a near-term US interest rate hike is. If Fed speakers are hawkish, then the US Dollar could rise and drive down Australian Dollar demand.
New Zealand Dollar (NZD)
The New Zealand Dollar has been positive against almost all of its regular peers today, thanks to a relatively stable result for New Zealand’s heavy truckometer figure for December.
Although this did fall by -0.1%, the minimal reduction in truck movements is being seen as a positive sign of road shipping and economic activity for 2017.
Friday morning will bring Chinese import figures for December, which are expected to drop on the year. This could cause notable damage to the New Zealand Dollar, given that it points towards theoretically less goods coming into the country from New Zealand Dollar.
Canadian Dollar (CAD)
Canadian Dollar trading has gotten off on a strong footing today, thanks to rising crude oil costs, as well as the massive crash in demand for its southern neighbour, the US Dollar.
The Canadian data to watch out for this afternoon is November’s new housing price indices, which are expected to slow from 0.4% to 0.3% on the month.