Pound (GBP) subdued in absence of data
The pound (GBP) was muted yesterday, stumbling against its stronger rivals and wavering elsewhere, amid a lack of UK economic data.
Sterling was also kept in limbo by the political situation in the UK. While investors are relieved that the Labour Party may have avoided a lengthy leadership contest, uncertainty remains over the government’s future policy direction.
The Confederation of British Industry’s (CBI) latest distributive trades survey may have a limited impact on the pound today. Instead, GBP investors may focus on domestic political headlines.
Euro (EUR) struggles amid USD strength
The euro (EUR) initially came under pressure yesterday due to its strong negative correlation with the rising US dollar (USD).
However, the common currency avoided steeper losses, and recovered later against some peers, thanks in part to an improvement in German business morale in June.
Turning to today, markets are expecting another positive German data release. Consumer confidence is expected to have improved heading into July. Could this help the euro regain its footing?
US dollar (USD) continues to climb amid risk aversion
USD continued its recent winning streak yesterday, with the US dollar index hitting its highest level in over a year, as a pessimistic market mood prevailed.
Ongoing anxiety around a possible AI bubble and higher interest rates from the Federal Reserve saw investors shun riskier assets and favour the safe-haven ‘greenback’.
The focus today falls on the latest US core PCE price index, the Fed’s preferred measure of inflation. If price pressures accelerated in May, interest rate hike bets could lift the US dollar.
Canadian dollar (CAD) buoyed by rising USD
The Canadian dollar (CAD) ticked higher against some peers yesterday thanks to its positive correlation with USD, although weaker oil prices limited the crude-linked currency’s potential.
Today, a lack of Canadian data could leave CAD to trade on oil prices movements. Ongoing weakness in crude could weigh on the ‘loonie’.
Australian dollar (AUD) rangebound despite upbeat jobs report
The Australian dollar (AUD) wavered in a narrow range overnight, with positive Australian jobs data failing to lift the ‘Aussie’ amid a cautious market mood.
New Zealand dollar (NZD) languishes near multi-month lows
The New Zealand dollar (NZD) was also subdued last night as a lack of data and a muted market mood kept NZD trading near recent lows.
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.
