EUR/GBP Softens Ahead of Lagarde’s Speech
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EUR/GBP hovers near 0.8315 as investors await European Central Bank President Christine Lagarde’s speech for direction. President Trump’s administration plans to impose 25% tariffs on steel and aluminium imports and retaliatory tariffs on countries it views as engaging in unfair trade practices that could harm the Eurozone. In February, the Eurozone Sentix Investor Confidence Index improved to -12.7, but concerns over trade tensions persist. Growing speculation of further ECB rate cuts adds downward pressure on the euro. Without key market data, sentiment around Lagarde’s speech will likely influence EUR/GBP movements.
USD/CAD Buoyed Amid Trump’s Tariff Threats
USD/CAD rose to 1.4336 in response to Trump’s tariff remarks, undermining Canada’s economy as a key steel supplier to the US. However, stronger-than-expected Canadian employment data for January, which added 76,000 jobs, helped bolster the loonie. Meanwhile, US Nonfarm Payrolls (NFP) data showed mixed results, with job growth falling short of expectations, yet wage growth remained stable and strong. USD/CAD will likely be influenced by oil price movements, market reactions to Trump’s tariff proposals, and US labour market data.
AUD/JPY Lifted by BoJ Rate Hike Bets
AUD/JPY appreciated near 95.66 as ongoing concerns over US trade tariffs and hawkish expectations for the Bank of Japan continue to bolster the yen. The IMF cautioned about risks associated with BoJ rate hikes, including escalating government debt servicing costs and the potential for corporate bankruptcies. Meanwhile, China’s CPI and PPI data have heightened concerns regarding trade relations, which may impact the Australian Dollar. Speculation around the monetary policies of both the Bank of Japan and the Reserve Bank of Australia, alongside any geopolitical developments, will likely drive AUD/JPY movements in upcoming sessions.
EUR/USD Dampened by Fresh Trump Tariff Threats
EUR/USD weakened to 1.0328 amidst fears of US tariffs on steel and aluminium. Trump’s threat of reciprocal tariffs on perceived unfair trade partners raises concerns for the Eurozone. Germany’s industrial production fell short of expectations, though the trade surplus increased. The Eurozone Sentix Investor Confidence Index rose, yet trade tensions linger over the euro. The US NFP report showed mixed employment data, with strong wage growth supporting the greenback. With ECB President Lagarde’s upcoming speech, investors will closely watch how Trump’s new tariff proposals affect the EUR/USD rate.
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