Pound (GBP) ends July on a low
The pound (GBP) trended broadly lower on Thursday, capping off the currency’s worst monthly performance in almost two years.
The slide in Sterling came as it continues to suffer from concerns over the UK’s fiscal health, with recent policy setbacks and lacklustre data painting a cloudy picture for growth in the second half of the year.
Turning to today’s session, the pound may struggle to attract support if July’s finalised manufacturing PMI confirms the UK factory sector remained in a state of contraction.
Euro (EUR) buoyed by positive data
Surprisingly upbeat data helped the euro (EUR) trend broadly higher through yesterday’s session.
These gains were initially driven by data showing that Eurozone unemployment held at a record low in June, before being reinforced after German inflation surprised to the upside last month.
The focus for EUR investors today will be the Eurozone’s consumer price index, with the euro likely to come under pressure if July’s preliminary CPI figures report another cooling of inflation.
US dollar (USD) stable as US inflation prints above expectations
The US dollar (USD) was steady on Thursday, with the currency consolidating its recent gains amid end-of-month trade flows.
This was aided by the latest US core PCE price index, as the Federal Reserve’s preferred indicator for inflation surprised to the upside in June.
The spotlight today will be on the latest US non-farm payroll report. If July’s figures point to a cooling US labour market, it may revive bets for a September rate cut and reverse some of the US dollar’s recent gains.
Canadian dollar (CAD) underpinned by rise in GDP
The Canadian dollar (CAD) attracted some modest support yesterday as CAD investors were pleasantly surprised by an uptick in Canadian GDP in June.
Meanwhile, the ‘loonie’ faces headwinds today, after US President Donald Trump raised tariffs on Canadian goods to 35%.
Australian dollar (AUD) pressured by RBA rate cut bets
The Australian dollar (AUD) was left subdued overnight on Thursday as a larger-than-expected cooling of domestic input inflation stoked bets for additional Reserve Bank of Australia (RBA) interest rate cuts.
New Zealand dollar (NZD) subdued on consumer confidence miss
The New Zealand dollar (NZD) was also muted in overnight trade after data showed a surprise decline in domestic consumer confidence last month.
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.
