The Pound Sterling (GBP) trades higher against its major currency peers, rising 0.17% to near 1.3200 against the US Dollar (USD) during the European trading session on Tuesday.
Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has bounced from February’s 0.8610 support and is now approaching its 200‑day moving average.
TD Securities’ Global Strategy Team notes the RBA hiked in March citing persistent inflation, strong demand, a tight labour market and higher Oil prices.
USD/CHF advances on Tuesday, rising 0.12% to trade near 0.8005 at the time of writing, extending a six-day winning streak. The pair is supported by a slight advantage for the US Dollar (USD) and relative weakness in the Swiss Franc (CHF) amid improving global risk appetite.
European Central Bank (ECB) Governing Council member Madis Müller said in an interview in Tallinn, reported by Bloomberg during European trading hours on Tuesday, that there could be an interest rate hike by the central bank in the April policy meeting.
Gold (XAU/USD) maintains a moderate bullish tone on Tuesday, extending its recovery from last week’s lows near $4,100, yet with resistance at the $4,600 area, holding upside attempts for now.
ING’s Chris Turner notes short-dated Euro swap rates have started to edge lower after a sharp spike, but real rate differentials have moved against EUR/USD. He argues this could be Euro-negative if the ECB refrains from an April hike while inflation expectations stay high.
Italy Industrial Sales n.s.a. (YoY) declined to -1% in January from previous 3.6%
India Trade Deficit – RBI dipped from previous -68.5B to -87.4B in 3Q
Italy Industrial Sales s.a. (MoM) fell from previous 0.5% to -0.3% in January
Rabobank’s Global Strategist Michael Every highlights that Brent has eased to around $111 and WTI to $102 despite a Kuwaiti tanker being hit, while European and African Oil markets are tightening as Asia fills supply gaps. He cites Bloomberg’s warning of $140 Oil if Red Sea shipping is hit again.
The EUR/USD’s tame recovery attempts seen earlier on Tuesday have been capped below 1.1490, before the release of softer-than-expected Eurozone Harmonised Index of Consumer Prices (HICP) figures.
