The Euro and pound have been on impressive runs of late. Both currencies stand out as clear outperformers, trading at fresh yearly highs against the buck and reaching their highest levels against the US dollar since early November. They may be benefiting as alternative safe-haven options in a market that is increasingly cautious about the unpredictability of the US dollar due to shifting US administration policies.
The Euro is also getting a boost from news of the German government’s infrastructure fund and hotter-than-expected Eurozone inflation data. Meanwhile, Aussie GDP came in mostly in line with expectations, and the RBA pushed back against the idea of additional rate cuts despite dovish-leaning market pricing.
Looking ahead, it will be interesting to see if tensions ease regarding US tariffs on Canada and Mexico. Adding to the Canadian dollar’s challenges, slumping oil prices have also weighed on the currency.
As for the calendar, key events for the remainder of the day include US ADP employment data, a speech by BoE Governor Bailey, US ISM Services, Factory Orders, and the Fed’s Beige Book.
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
