Geopolitics Dominates
GBP: The British Pound remained subdued, following recent gains, due to a lack of impactful British data which has resulted in the Pound being dominated by factors elsewhere. There is growing geopolitical unease in light of recent actions in Venezuela and the capturing of oil tankers which has decreased market confidence globally. However, irrespective of the geopolitical factors, there is an expectation of increased global growth helping to support the Pound. Overall, the Pound lacks a clear trajectory going forward with its recent direction not being driven by domestic factors but external volatile factors.
EUR: The Euro traded narrowly after Eurozone inflation data showed significant easing. Markets would normally expect for this to result in a fall in the Euro however, the currency remained steady as many in the market do not expect there to be any change in policy. Many in the market look towards upcoming German data, broader economic sentiment, unemployment figures and importantly geopolitical developments to determine near term direction.
USD: The U.S. Dollar edged modestly higher from recent lows as investors bought dips, but gains were capped by mixed risk sentiment and ongoing geopolitical concerns. With equities firm, the safe haven lacked a clear catalyst. Attention turns to upcoming US data, including employment, factory orders, job openings and services activity, where softer results could pressure the Dollar amid cautious market positioning globally overall.
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