Pound (GBP) mixed in absence of data
The pound (GBP) traded without a clear trajectory yesterday as a lack of UK data left the currency rudderless.
Today, the UK’s latest GDP figures have so far failed to lift the pound, despite showing the UK economy grew 0.4% in the second quarter. Growth was due in part to the World Cup in June, and economists expect GDP to slow through the second half of the year.
Euro (EUR) subdued as mood improves
The euro (EUR) edged lower against its riskier peers yesterday, as the improving mood dampened demand for EUR.
However, the common currency was spared steeper losses thanks to its strong negative correlation with the US dollar (USD), as the latter currency retreated.
Looking ahead, the euro may face subdued movement today, if Eurozone industrial production stalled in June as expected.
US dollar (USD) volatile following US inflation
The US dollar initially took a tumble yesterday as cooling US inflation dampened Federal Reserve interest rate hike bets.
However, the ‘greenback’ managed to rebound amid the ongoing uncertainty around the US-Iran conflict.
Turning to today, the latest producer price index may impact USD. If producer prices rose in July, it could help USD gain ground.
Canadian dollar (CAD) wobbles as oil prices waver
The commodity-sensitive Canadian dollar (CAD) lacked a clear directional bias yesterday as crude prices continued to waver broadly sideways.
Oil price dynamics could drive the Canadian dollar again today, with further turbulence potentially leading to choppy movement in CAD.
Australian dollar (AUD) falls as sentiment sours
The Australian dollar (AUD) retreated overnight as a risk-off mood weighed on the ‘Aussie’.
New Zealand dollar (NZD) slumps to multi-week lows
The New Zealand dollar (NZD) fell sharply overnight as domestic business inflation expectations eased in the third quarter, rather than rising as forecast, which dampened Reserve Bank of New Zealand (RBNZ) rate hike bets.
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