Pound (GBP) dented by soft employment data
The pound (GBP) faced headwinds through yesterday's session, with the release of the UK's latest jobs report.
Higher-than-expected unemployment and a slowdown in wage growth sapped Sterling sentiment as it weakened the odds of the Bank of England (BoE) still tightening monetary policy later in the year.
The UK's consumer price index is in the spotlight today. UK inflation accelerated to a four-month high in July, but has so far had limited impact on Sterling as it doesn’t appear to have moved the needle regarding BoE policy expectations.
Euro (EUR) steadies as German economic sentiment improves
The euro (EUR) was stable on Tuesday, following the publication of Germany's latest ZEW economic sentiment index.
August's index reported a stronger-than-expected improvement in morale, supported by strong exports from the Eurozone's largest economy.
EUR investors will look to a speech by European Central Bank (ECB) President Christine Lagarde for fresh impetus today, with a hawkish tilt to her comments potentially triggering more meaningful support for the euro.
US dollar (USD) underpinned by safe-haven demand
The US dollar (USD) edged higher yesterday as the expiration of the 60-day Memorandum of Understanding between the US and Iran soured market sentiment and buoyed the currency’s safe-haven appeal.
However, this support proved modest, as rising US Treasury yields perpetuated concerns about the US debt burden.
Coming up, the release of the minutes from the Federal Reserve's latest policy meeting will be the highlight for USD investors today as they look for any additional insights into how the central bank may shape policy in the coming months.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) firmed on Tuesday as an uptick in oil prices reflected positively on the commodity-linked currency.
If this uptrend in oil persists, the 'loonie' may garner additional support through today's session.
Australian dollar (AUD) slips on underwhelming wage data
The Australian dollar (AUD) ticked lower overnight on Tuesday, pressured by a downward revision to domestic wage growth in the first quarter.
New Zealand dollar (NZD) buoyed by strong PPI print
The New Zealand dollar (NZD) held its ground in overnight trade, as Reserve Bank of New Zealand (RBNZ) rate hike bets firmed in response to a surprise surge in domestic producer prices in the second quarter.
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