Pound (GBP) regains ground as political jitters fade
The pound (GBP) strengthened yesterday, as market anxiety around the UK’s uncertain political outlook eased.
In addition, the IMF upgraded its growth forecast for the UK economy this year, citing ‘strong pre-war momentum’.
Today, the UK’s latest jobs report is the focus for GBP investors. With unemployment rising and wage growth slowing, Sterling could face headwinds.
Euro (EUR) mixed amid lack of data
The euro (EUR) struggled to find a clear trajectory yesterday as a lack of Eurozone data left the currency to trade on wider market trends.
This saw the single currency soften against stronger peers while rising against its weaker rivals.
Turning to today, Eurozone economic data remains thin on the ground. As a result, the common currency may trade without a clear direction.
US dollar (USD) falters as profit-taking sets in
The US dollar (USD) snapped its winning streak on Monday, with the American currency falling afoul of some profit-taking following last week’s impressive gains.
Additionally, the cautious optimism surrounding ongoing US-Iran peace talks limited safe-haven demand.
The latest ADP employment change figure could influence USD exchange rates today, while investors will also be keeping an eye on the Middle East.
Canadian dollar (CAD) weakens as oil prices dip
The crude-linked Canadian dollar (CAD) stumbled yesterday, as oil prices eased amid the latest developments in the Middle East.
Canada’s latest consumer price index is the key focus for CAD investors today. A jump in inflation in April could boost the ‘loonie’ if it raises expectations for a more hawkish response from the Bank of Canada (BoC).
Australian dollar (AUD) slips following RBA minutes
The Australian dollar (AUD) weakened overnight in the wake of the Reserve Bank of Australia’s (RBA) latest meeting minutes, which showed that policymakers were more cautious about the need for further rate hikes than markets anticipated.
New Zealand dollar (NZD) falls as spending declines
The New Zealand dollar (NZD) also retreated overnight as new data showed an unexpected 1.3% contraction in card spending in April.
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