Pound (GBP) retreats amid soft retail data
The pound (GBP) stumbled on Tuesday, with Sterling struggling to hold on to its recent gains despite better-than-forecast data from the Confederation of British Industry (CBI).
Although the CBI retail sales balance improved more than expected in May, it remained deep in negative territory at -46.
Looking forward, UK data is in short supply today. As a result, movement in Sterling may be muted.
Euro (EUR) unclear in absence of data
A lack of Eurozone data saw the euro (EUR) trade without a clear direction yesterday.
Without a domestic catalyst to drive movement, the safer single currency found itself wavering amid the uncertain market mood.
Eurozone data remains thin on the ground during today’s session, which could leave the common currency to trade without a clear trajectory once again.
US dollar (USD) capped by improving mood
The US dollar (USD) initially attracted some support yesterday as fresh geopolitical jitters boosted the safe-haven currency’s appeal.
However, USD found its upside potential stifled as risk appetite improved as the session went on. Despite the recent US strikes on Iran, markets were hopeful that ongoing peace negotiations could yield results.
Today brings the latest weekly ADP employment change figure along with a speech from Federal Reserve policymaker Lorie Logan. Could healthy employment data and hawkish comments underpin the US dollar?
Canadian dollar (CAD) unmoved as oil edges higher
A modest uptick in oil prices failed to lift the commodity-linked Canadian dollar (CAD) yesterday, as crude prices remained below last week’s levels.
With Canadian data absent from the calendar today, oil price movements could influence CAD today. If we see a steeper rise in prices, the ‘loonie’ may strengthen.
Australian dollar (AUD) drops as inflation eases
The Australian dollar (AUD) fell sharply overnight after Australian inflation cooled more than forecast in April, dampening bets on further rate hikes from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) soars following RBNZ’s hawkish hold
The New Zealand dollar (NZD) roared higher overnight as the Reserve Bank of New Zealand (RBNZ) held rates steady but strongly indicated that it could tighten monetary policy soon.
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