Pound (GBP) subdued as UK consumer sentiment plunges
The pound (GBP) was muted yesterday amid signs of a worrying drop in UK consumer morale.
S&P Global’s consumer confidence index for the UK plummeted to a 33-month low in April as households grew increasingly concerned about inflation and the jobs market.
Today’s session kicked off with the publication of the UK’s latest jobs figures. While February’s figures reported a surprise fall in unemployment, movement in the pound has so far been muted as slowing wage growth and a drop in payrolls point to a labour market that is still weakening.
Euro (EUR) flat despite jump in German PPI
The euro (EUR) struggled to attract any meaningful support on Monday, despite signs of rising inflationary pressures in Germany.
Germany’s latest producer price index saw factory input prices soar 2.5% in March, stoking expectations that inflation in the Eurozone’s largest economy will continue to accelerate as this increase is passed on to consumers.
Coming up, Germany’s latest ZEW economic sentiment index could apply pressure to the euro today if morale continued to deteriorate this month.
US dollar (USD) mixed as US seizes Iranian ship
The US dollar (USD) opened this week’s session on strong footing amid fears the ceasefire between the US and Iran is at risk of collapse as Tehran appeared to rule out further talks with the US, following the seizure of an Iranian-flagged cargo ship attempting to navigate the Strait of Hormuz.
However, the ‘greenback’ was then made to walk back most of these gains, as Reuters reported Iranian officials are ‘positively reviewing’ involvement in the next round of talks.
In addition to Middle East uncertainty, the US dollar may also be supported by the latest US retail sales figures today, which are forecast to report a sharp acceleration in sales growth last month.
Canadian dollar (CAD) flat as inflation undershoots expectations
The Canadian dollar (CAD) was rangebound on Monday as Canada’s consumer price index reported domestic inflation accelerated at a slightly slower-than-expected pace last month.
Looking ahead, the focus for CAD investors today is likely to return to oil-price dynamics, with the ‘loonie’ poised to firm if crude prices continue to climb.
Australian dollar (AUD) subdued in cautious trade
The Australian dollar (AUD) wavered through Tuesday’s Asian trading session as uncertainty over the Middle East peace process limited investor demand for risk-sensitive assets.
New Zealand dollar (NZD) surges on hot Inflation print
The New Zealand dollar (NZD) jumped in overnight trade as stronger-than-expected domestic inflation figures stoked bets for an interest rate hike from the Reserve Bank of New Zealand (RBNZ).
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