Pound (GBP) unsure amid lack of data
The pound (GBP) traded without a clear direction yesterday as a lack of UK economic data left the currency rudderless.
GBP investors were also reluctant to alter their positions ahead of the Bank of England (BoE) interest rate decision tomorrow.
Sterling could remain muted today amid an ongoing lack of UK economic data and ahead of tomorrow’s BoE policy announcement.
Euro (EUR) rises as USD declines
The euro (EUR) initially lacked a clear directional bias yesterday, with market-moving Eurozone data absent from the calendar.
However, the single currency rallied in the afternoon, thanks to its strong negative correlation with the US dollar (USD) as the American currency declined.
Eurozone data is thin on the ground today, potentially leaving the euro to trade without a clear trajectory.
US dollar (USD) retreats as consumer morale deteriorates
The safe-haven US dollar initially wavered yesterday, with a mixed market mood restricting USD movement.
The ‘greenback’ then slipped in the afternoon following the latest US consumer confidence index, which reported an unexpected deterioration in morale in July.
Market risk appetite could determine the US dollar’s direction today, although USD may be muted as traders brace for the Federal Reserve interest rate decision tonight. A hawkish tone from the Fed could lift USD this evening.
Canadian dollar (CAD) mixed as oil prices waver
The commodity-sensitive Canadian dollar (CAD) was mixed yesterday as wavering oil prices and a lack of domestic data left CAD without a clear trajectory.
With Canadian data in short supply today, oil price dynamics could drive the ‘loonie’. If peace hopes in the Middle East keep crude prices subdued, CAD could soften.
Australian dollar (AUD) slides as inflation cools
The Australian dollar (AUD) fell overnight as Australian inflation unexpectedly cooled in the second quarter, further dampening bets on an August rate hike from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) wobbles as risk appetite shifts
The New Zealand dollar (NZD) wavered overnight as a shifting market mood saw the risk-sensitive ‘kiwi’ stumble before finding its footing.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
