EUR/GBP trades around 0.8680 on Monday at the time of writing, virtually unchanged on the day. Price action remains limited as investors adopt a cautious stance amid rising geopolitical tensions in the Middle East and ahead of key inflation data from Germany.
HSBC analysts argue the Canadian Dollar (CAD) has outperformed most G10 peers during the Middle East conflict but now appears to be losing momentum.
Rabobank’s Senior Macro Strategist Stefan Koopman notes that Brent has risen to 115 dollars as the Iran war enters its fifth week, with markets focused on when oil flows through the Strait of Hormuz will resume and at what price Oil shifts from an inflation to a recession story.
Greece Producer Price Index (YoY) climbed from previous -3.7% to -1.7% in February
Eurozone Consumer Confidence in line with forecasts (-16.3) in March
Eurozone Economic Sentiment Indicator above forecasts (96.5) in March: Actual (96.6)
Eurozone Services Sentiment registered at 4.9 above expectations (4) in March
Eurozone Industrial Confidence came in at -7, above expectations (-9) in March
The Pound (GBP) accelerated its downtrend against the Japanese Yen (JPY) on Monday.
USD/CAD continues its winning streak for the sixth successive day, trading around 1.3920 during the European hours on Monday. The pair gains ground as the US Dollar (USD) regains its ground amid increased safe-haven demand on rising doubts over a resolution to the Iran war.
United Kingdom Net Lending to Individuals (MoM) above forecasts (£5.6B) in February: Actual (£6.8B)
United Kingdom M4 Money Supply (YoY) up to 3.6% in February from previous 3%
