As European trading opened the Pound continued to trade below the key psychological level of 1.20 against the Euro. Sterling was also weaker against the US Dollar ahead of the release of UK trade data.
The ‘Greenback’ edged higher during North American trading thanks to a slightly better-than-forecast US retail sales report. Renewed concerns regarding the situation in Ukraine and the possible annexing of Crimea also pushed investors towards the safe-haven US Dollar.
After ECB President Mario Draghi asserted that forward guidance could help rein in real interest rates and weaken the Euro, the common currency broadly softened. The Euro largely held declines against peers like the US Dollar and Pound as final German inflation figures confirmed initial estimates.
While the ‘Aussie’ rallied earlier this week in response to impressive Australian employment data, it shed gains overnight as Goldman Sachs slashed its 12 month forecast for the currency. Ukraine concerns also limited the Australian Dollar’s appeal.
New Zealand Dollar
During Australasian trading the ‘Kiwi’ trimmed its recent advance against the US Dollar. Although New Zealand’s Performance of Manufacturing index held at 56.2 in February – above the 50 mark separating growth from contraction – a bout of risk aversion restrained the nation’s Dollar.
Canadian DollarGood to go