Pound Sterling GBP/EUR
The Pound was mixed against the Euro following the publication of positive UK data. Mortgage approvals hit a six-year high and the latest Markit manufacturing PMI report came in better-than-forecast. Gains were limited due to market sentiment being muted due to the ongoing crisis in Ukraine. The currency is likely to experience volatility against the Euro as the Bank of England and European Central Bank hold their policy meetings for the month on Thursday.
US Dollar USD/EUR
The ‘Greenback’ was higher against the Euro and other peers as demand for the currency was bolstered by increased demand for safe havens. Worries over the situation in Ukraine escalated today when the USA announced that economic sanctions could be imposed upon Russia if it did not withdraw its forces from the Crimea. Ukraine’s military is also on a combat footing raising fears of an armed incident.
The Euro slumped to a session low against the US Dollar after the US currency received a boost after the ISM PMI came in positively. In the Eurozone, data on Monday confirmed that the region’s manufacturing purchasing managers’ index declined to 53.2 in February from 54.0 in January. It was the first dip in five-months, highlighting the fragile nature of the recovery in the Euro area.
Australian Dollar AUD/EUR
The ‘Aussie’ initially made gains against most of its major peers due to data which showed that the number of jobs being advertised in Australia jumped by 5.1% on the previous month. Aversion to riskier currency’s as a result of events in Ukraine however sent the currency weaker as the session wore on and a weaker-than-expected manufacturing report out of China also added pressure.
Canadian Dollar CAD/EUR
The ‘Loonie’ was under pressure against the US Dollar and was softer against the Euro due to the risk adverse nature of the markets on Monday. The geopolitical situation regarding Russia and Ukraine limited demand for riskier commodity based currencies such as the ‘Loonie’.