Pound (GBP) muted following inflation figures
The pound (GBP) was subdued yesterday following the UK’s latest consumer price index.
Headline inflation eased more than expected in June, dropping from 2.8% to 2.6%. However, core inflation held steady at 2.6%, rather than cooling to 2.5%.
Today, new data from the Confederation of British Industry (CBI) could influence GBP. However, the focus may remain on domestic political developments, as markets continue to assess Andy Burnham’s first week as Prime Minister.
Euro (EUR) gains capped by looming ECB decision
The euro (EUR) ticked slightly higher yesterday amid a cautious market mood, although the common currency’s gains were limited.
EUR investors were reluctant to place aggressive bets ahead of the European Central Bank’s (ECB) interest rate decision, due to be announced later today.
The ECB is expected to hold rates steady when it concludes its decision, leaving the focus on the bank’s forward guidance. Any hints that further rate hikes are on the way could underpin EUR.
US dollar (USD) uncertain despite risk aversion
The US dollar (USD) moved without a clear direction yesterday, as a risk-off mood failed to provide the safe-haven currency with a clear upside.
Although USD was able to firm against weaker rivals, it softened against its stronger peers.
On the docket today we have the latest initial jobless claims figure from the US. A rise in claims last week could put modest pressure on the ‘greenback’.
Canadian dollar (CAD) firms as crude prices rise
The crude-linked Canadian dollar (CAD) ticked higher yesterday as oil prices continued to rise amid the intensifying crisis in the Middle East.
A forecast slowdown in Canadian retail sales growth in June may weigh on CAD today, although the ‘loonie’ could hold strong if oil prices remain elevated.
Australian dollar (AUD) boosted by upbeat jobs data
The Australian dollar (AUD) jumped overnight thanks to stronger-than-forecast jobs data, with employment rising by 76,300 in June, rather than the expected 15,000.
New Zealand dollar (NZD) trends lower amid cautious mood
The New Zealand dollar (NZD) softened overnight as a risk-off mood subdued the risk-sensitive ‘kiwi’.
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