Pound Sterling (GBP)
The Pound has largely shrugged off earlier losses against the Euro and US Dollar today, rising steadily after an initial dip.
This was caused when Theresa May signed a letter activating Article 50 on Tuesday night, which is due to be reach European Council President Donald Tusk today.
When Tusk receives the letter, Brexit will have finally, officially begun, though the worst of the Brexit trigger damage may already be over due to prior pricing-in by traders.
In other UK news, the Scottish Parliament has approved holding a second independence referendum, though this is unlikely to occur for the foreseeable future.
With the week’s biggest UK news having passed without serious incident, the Pound may still be weakened on Thursday and Friday when negatively-forecast confidence and GDP data comes out.
Ironically, the Euro seems to be suffering the most out of today’s Brexit beginning, rather than the Pound.
Eurozone data has been mostly positive, with Italian confidence rising, but the European Central Bank (ECB) has recently come under fire from Transparency International.
The anti-corruption organisation has stated that the ECB moved into political territory during the Eurozone crisis, rather than staying neutral as would be expected.
The Euro could reclaim lost ground against the Pound and Euro on Thursday when Eurozone confidence stats for March come out; these are predicted to improve in all fields bar industrial sentiment.
US Dollar (USD)
After crashing on Monday and making scattered gains on Tuesday, the US Dollar has been in a state of gradual recovery today.
The latest US developments have seen President Donald Trump repeal Obama administration climate change agreements.
In a bid to fulfil his pledge of bringing jobs to the US, Trump has focused on the resources sector with a plan to ‘end the war on coal’ and bring fossil mining back in a major way.
Amid criticism from environmental groups, Trump has claimed that;
‘We can protect the environment while providing people with work’.
The US Dollar’s recovery could be dashed on Thursday when Q4 GDP stats come out, given that a slowdown is forecast on the quarter.
Australian Dollar (AUD)
With the US Dollar remaining unstable, the Australian Dollar has traded closely against the Pound and advanced against the Euro and US Dollar today.
Iron ore prices have enabled these latest gains, with the fluctuating price moving upwards of late. The fact that Chinese demand remains high suggests these gains could continue in the near-term, which would further raise Australian Dollar demand.
Thursday’s AU data will cover new home sales in February, which previously fell by -2.2%. A rise would likely boost the Australian Dollar’s value.
New Zealand Dollar (NZD)
On a busy day for global currencies, the New Zealand Dollar has risen moderately against the Euro, Pound and US Dollar.
Recent support has come from Rangitikei MP Ian McKelvie, who has spoken optimistically about expanding New Zealand’s future international trading.
Thursday’s NZ data will cover building permits granted in February; a rise above the previous 0.8% figure could enable further NZD gains.
Canadian Dollar (CAD)
Crude oil costs have been advancing steadily today, enabling Canadian Dollar gains against the Pound, Euro and US Dollar.
Although Bank of Canada (BOC) Governor Stephen Poloz voiced concern about the Canadian housing market on Tuesday, this has failed to dent CAD demand.
The last major CA data of the week will be Friday’s GDP stats for January, which are expected to see no change from 0.3%.