Daily Currency Update

USD - US Dollar

Yesterday, the USD saw a slight increase, strengthening overnight due to weaker risk appetite, as Asian and European stocks mostly fell. US equity futures and crude prices also dropped, while bonds gained. Key events today include the second reading of US Q4 GDP and January's Wholesale Inventories, both due at 8:30ET, with limited potential for further USD gains.

CAD - Canadian Dollar

The CAD is underperforming in the session, affected by weaker stocks and falling crude oil. The CAD is likely to remain soft for now with little incentive for the CAD to strengthen given the increasing interest rate differentials between the US and Canada. Canada's Q4 Current Account balance data is set for release at 8:30ET. Observe USD/CAD trends.

EUR - Euro

The EUR has weakened against the USD, now trading in the low 1.08s with no significant Eurozone economic data released overnight. ECB Governor Kazimir stated there's no hurry for rate cuts, preferring June for the ECB's initial reduction, consistent with his recent policy outlook statements.

GBP - British Pound

Sterling has weakened against the stronger USD, similar to other major currencies, with no clear fundamental reasons besides a shift towards the USD amid risk-off sentiment. However, GBP has shown resilience near its overnight low and might rebound more robustly as the North American session begins.