Pound (GBP) steady as political risks fade
The pound (GBP) held strong at the start of this week, with fading political anxiety in the UK continuing to provide Sterling with support.
However, a lack of British economic data limited GBP’s upside potential, leaving it to trade sideways against its stronger rivals.
UK data remains absent from the calendar today, potentially leaving the pound to trade without a clear direction.
Euro (EUR) softens despite positive German data
The euro (EUR) came under pressure yesterday, despite a larger-than-forecast rebound in German factory orders in May.
The latest Eurozone retail sales figures also failed to boost EUR, with the data missing expectations to show a smaller-than-anticipated rebound.
Germany’s latest industrial production figures this morning reported an unexpected acceleration in output. Will this be enough to lift the single currency today?
US dollar (USD) retreats as market mood improves
The US dollar (USD) initially attracted some dip-buying on Monday, as US markets reopened following the long Independence Day weekend.
However, USD then trended lower in the afternoon as an improving market mood dampened demand for the safe-haven ‘greenback’.
The latest ADP weekly employment change figure may influence USD today. Otherwise, risk appetite could drive the US dollar. The ‘greenback’ could firm amid fresh tensions in the Middle East.
Canadian dollar (CAD) languishes as oil remains weak
The crude-linked Canadian dollar (CAD) fell yesterday, with oil prices remaining at their lowest levels since before the US-Iran war.
Today, Canada’s latest Ivey PMI could support the Canadian dollar, if it hits a nine-month high in June as expected. An uptick in oil following an attack on a tanker in the Strait of Hormuz could also support the ‘loonie’.
Australian dollar (AUD) slips amid Middle East concerns
The Australian dollar (AUD) trimmed its Monday gains overnight, as market sentiment soured following fresh concerns about tensions in the Middle East.
New Zealand dollar (NZD) falls as risk appetite weakens
The New Zealand dollar (NZD) also retreated during overnight trade amid the anxious market mood.
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