Pound (GBP) flat as BoE rate decision looms
The pound (GBP) was rangebound yesterday, amid a lack of any clear catalyst for movement.
Sterling was also steady as GBP investors remained cautious ahead of the Bank of England’s (BoE) upcoming interest rate decision.
Looking ahead, the pound could face resistance today if July’s finalised PMIs confirm a slowdown in the UK’s key services sector.
Euro (EUR) weakens on poor investor morale
The euro (EUR) stumbled on Monday, following the release of disappointing Eurozone investor confidence figures.
The surprisingly sharp deterioration in sentiment this month appeared linked to disillusionment over the recent EU-US trade pact.
Coming up, the Eurozone’s latest producer price index could provide a lift to the euro today, if June’s index reports an acceleration in factory input inflation.
US dollar (USD) slips amid payrolls drama
The US dollar (USD) stumbled through yesterday’s session, as Friday’s abysmal payroll figures continued to stoke Federal Reserve rate cut bets.
These losses were compounded by questions over the accuracy of future US economic releases, after US President Donald Trump fired the head of the Bureau of Labor Statistics (BLS) in response to Friday’s data.
Coming up, the latest ISM services PMI could offer support to the US dollar today, if July’s index points to an acceleration of growth in the US services sector.
Canadian dollar (CAD) undermined by soft oil prices
The Canadian dollar (CAD) struggled to attract support on Monday as a sizable pullback in oil prices pressured the commodity-linked currency.
Assuming oil prices continue to soften, the ‘loonie’ is likely to remain on the defensive today.
Australian dollar (AUD) supported by upbeat Chinese PMI
The Australian dollar (AUD) wavered overnight on Monday, but was ultimately able to end the Asian session higher thanks to a stronger-than-expected Caixin services PMI from China.
New Zealand dollar (NZD) slides in risk-off trade
The New Zealand dollar (NZD) initially rose in overnight trade, before relinquishing its gains as market risk appetite began to sour.
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