Pound (GBP) wobbles as Burnham enters Downing Street
Trade in the pound (GBP) was mixed yesterday as Andy Burnham became the UK's latest Prime Minister.
While Sterling sentiment was underpinned by hopes Burnham might usher in greater UK political stability, his appointment of John Healey as Chancellor of the Exchequer caught GBP investors by surprise.
The focus turns back to the UK's economic outlook today, with the pound attracting modest support as UK employment data surprised to the upside.
Euro (EUR) slips on soft German PPI print
The euro (EUR) trended broadly lower on Tuesday, following the publication of Germany's latest producer price index.
June's PPI release reported a 0.3% contraction in factory gate prices, with signs of easing inflationary pressures tempering some of the more hawkish European Central Bank (ECB) interest rate expectations.
Coming up, Germany's ZEW economic sentiment index could provide some lift for the euro today, if morale in the Eurozone's largest economy continued to improve as expected this month.
US dollar (USD) slips as diplomats work to revive US-Iran ceasefire
The US dollar (USD) was subdued at the start of the week amid some cautious optimism in the Middle East.
While the US and Iran continued to launch strikes at one another, geopolitical tensions eased as Tehran signalled it remained open to negotiations.
Events in the Gulf may continue to act as the primary catalyst for the US dollar today, with USD demand likely to remain under pressure if there are any hints that Washington might be willing to reopen diplomatic efforts.
Canadian dollar (CAD) undermined by weaker-than-expected inflation
The Canadian dollar (CAD) retreated on Tuesday as a softer-than-expected domestic inflation print reinforced expectations the Bank of Canada (BoC) will keep interest rates on hold in the near-to-medium term.
Meanwhile, the 'loonie' faces additional pressure today, after US President Donald Trump announced he will impose a 50% tariff on most Canadian goods.
Australian dollar (AUD) rises despite US-Iran strikes
The Australian dollar (AUD) continued to catch bids through Tuesday's Asian trading session, with AUD investors seemingly unfazed by the continued escalation of tensions in the Middle East.
New Zealand dollar (NZD) strengthens as inflation jumps
The New Zealand dollar (NZD) also rallied in overnight trade, buoyed by a stronger-than-expected second quarter inflation print.
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