Pound (GBP) flat amid lack of data
The pound (GBP) lacked a clear direction yesterday, as UK economic data remained in short supply.
This limited movement in Sterling, leaving GBP to trade sideways against the majority of its peers.
The Confederation of British Industry’s (CBI) latest distributive trades survey is due today. A modest improvement could lend GBP support, although any upside is likely to be limited.
Euro (EUR) shored up by German data
The euro (EUR) edged up yesterday thanks to upbeat economic data from Germany.
The country’s final GDP figures for the second quarter were revised slightly higher, while the latest IFO business climate index improved more than expected. However, EUR’s gains were limited in scope.
A speech from European Central Bank (ECB) policymaker Piero Cipollone could affect EUR today. However, his comments may only have a limited impact on the currency.
US dollar (USD) falters as mood improves
The US dollar (USD) was subdued yesterday as a slight improvement in the market mood dampened demand for the safe-haven currency.
Weaker-than-forecast US consumer confidence figures in the afternoon also failed to lift USD, as consumer morale unexpectedly deteriorated in August.
Looking ahead, the US core PCE price index – the Federal Reserve’s preferred measure of inflation – is due out today. If inflation held steady in July, USD could catch bids.
Canadian dollar (CAD) languishes amid trade tensions
The crude-linked Canadian dollar (CAD) remained on the back foot yesterday, languishing near multi-week lows against some peers, amid falling oil prices and US-Canada trade war fears.
Turning to today, the ‘loonie’ could remain under pressure if trade tensions continue to unsettle CAD investors.
Australian dollar (AUD) buoyed by hotter inflation figures
The Australian dollar (AUD) rose overnight after Australia’s latest inflation figures came in hotter than forecast, lifting bets for further Reserve Bank of Australia (RBA) monetary tightening.
New Zealand dollar (NZD) slips amid political uncertainty
The New Zealand dollar (NZD) faltered overnight as domestic political jitters weighed on the currency.
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