Ongoing Tensions Weakening The Euro
The Euro trades near a five-week low as ongoing tension in Ukraine continues with no signs of a resolution in sight. The U.S. dollar also edged higher in early Wednesday trading after the release of red-hot inflation data with a reading of 8.5% against a forecasted figure of 8.4%.
A little closer to home, sterling has found support following the release of better than expected inflation data that will maintain pressure on the Bank of England (BOE) to raise interest rates again in the near-future. However, any gains could be undone if inflation eats away at the UK’s economic activity.
In level terms, GBP/EUR opens this morning just below the 1.20 mark with Cable (GBP/USD) pushing lower to trade circa 1.29.80. The EUR/USD also opens lower, near Mays 2020 lows around the 1.08 region.
Data wise and a busy calendar today, New Zealand Central Bank hiked its interest rate to 1.5%. The 50bps being the biggest increase in over 22 years with the Bank of Canada also meeting for their monetary policy later today.