Pound (GBP) edges lower amid lack of data
The pound (GBP) trended slightly lower against its stronger counterparts on Tuesday, as a lack of UK data left Sterling without much support.
However, GBP avoided more notable losses as fading fears of UK political instability continued to underpin the currency.
UK data remains thin on the ground during today’s session, potentially leaving the pound to trade within a narrow range.
Euro (EUR) uncertain despite strong German industrial production
The euro (EUR) was mixed yesterday, with the safer single currency garnering support against riskier rivals amid an anxious market mood.
Stronger-than-forecast German industrial production figures also lent EUR support, although the common currency suffered from its negative correlation with the rising US dollar (USD).
Amid a lack of Eurozone data today, the common currency could find itself subdued.
US dollar (USD) firms as risk aversion takes hold
The US dollar attracted support yesterday, with a risk-off tilt in markets boosting demand for the safe-haven ‘greenback’.
Following three attacks on commercial shipping vessels in the Strait of Hormuz, markets are wary of further escalation.
Looking forward, the US dollar may be muted today as investors look ahead to the publication of the Federal Reserve’s June meeting minutes. A hawkish tone from Fed policymakers could support USD this evening.
Canadian dollar (CAD) climbs as oil prices rise
The commodity-linked Canadian dollar (CAD) gained ground yesterday, as the recent attacks in the Strait of Hormuz triggered a rise in oil prices.
With Canadian data thin on the ground today, crude prices could drive CAD exchange rates. Escalating tensions have pushed oil prices even higher, thereby boosting the ‘loonie’.
Australian dollar (AUD) wavers amid Middle East tensions
The Australian dollar (AUD) faced uncertain movement during Wednesday’s Asian session, with the US and Iran trading fresh strikes.
New Zealand dollar (NZD) jumps following RBNZ rate hike
The New Zealand dollar (NZD) leapt higher overnight after the Reserve Bank of New Zealand (RBNZ) raised interest rates and signalled that more hikes are possible.
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