Daily Currency Update

USD - US Dollar

The USD has dipped slightly as other currencies gain, despite a weak overall market sentiment. European stocks are down following losses in Asia, and US futures are also down. Bond markets are showing weakness, but the USD's drop against major currencies is modest. Indications suggest a short-term peak in the USD, but any further weakness might be minimal. Market activity could slow down during Easter week, with a light schedule and limited major US data releases like housing, regional Fed manufacturing, Durable Goods, Personal Income, Spending, and PCE.

CAD - Canadian Dollar

The CAD weakened on Friday, nearing the 1.36 mark, but remained within its recent trading range and slightly recovered in quiet trading, mirroring the USD's overall movement. With minimal domestic data, except for GDP on Thursday, and the Bank of Canada showing no rush to ease policies, the CAD's performance will likely be swayed by external risk sentiments and the general USD trend. Observe USD/CAD trends.

EUR - Euro

Attention on ECB policy may grow after the SNB's recent rate cut. While ECB's Scicluna mentioned an April rate cut could happen, this view is not widely shared, with most senior officials suggesting June for potential rate cuts. Currently, the market expects minimal easing in April, with more significant adjustments anticipated for June. Meanwhile, EURUSD is seeing some support in the low 1.08s, driven by bargain hunters.

GBP - British Pound

Sterling has modestly risen in subdued trading, influenced more by a weaker USD than by any UK developments today. BoE's Catherine Mann is set to speak, potentially offering insights into future policies. Notably, Mann, previously one of the hawks, aligned with the majority in last week's decision to maintain rates, shifting from a hike stance.