Pound (GBP) muted amid lack of data
The pound (GBP) was subdued yesterday as a lack of UK economic data left Sterling struggling to find support.
This left GBP investors to dwell on dovish comments from Bank of England (BoE) Governor Andrew Bailey earlier in the week, with the pound softening against stronger peers.
Turning to today, the spotlight falls on the UK’s latest consumer price index. Although inflation unexpectedly rose to 3.6% in June, this has failed to significantly lift the pound as investors await tomorrow’s jobs data.
Euro (EUR) dented by stronger US dollar
After trading sideways for much of the session, the euro (EUR) then came under significant pressure overnight.
EUR’s strong negative correlation with the US dollar (USD) saw it slide as USD strengthened.
Ongoing EU-US trade negotiations could impact the euro today. Any signs of progress could lift EUR, while ongoing concerns about tariffs could weigh on the common currency.
US dollar (USD) climbs as inflation rises
The US dollar leapt higher yesterday following the latest American consumer price index.
With inflation rising from 2.4% to 2.7% in June – its highest level since February – markets pared back bets on Federal Reserve interest rate cuts, thereby booting USD.
The latest US producer price inflation figures could influence USD today. Any signs of stubborn price pressures for American producers could further support the ‘greenback’.
Canadian dollar (CAD) buoyed by USD correlation
The Canadian dollar (CAD) found success yesterday thanks to its positive correlation with USD and higher-than-forecast Canadian core inflation in June.
Canadian economic data is thin on the ground today, therefore oil price movements may drive the commodity-linked ‘loonie’.
Australian dollar (AUD) flat amid cautious mood
The Australian dollar (AUD) wavered overnight, with a cautious market mood and a pullback in the US dollar confining AUD to a narrow range.
New Zealand dollar (NZD) slips as sentiment sours
The New Zealand dollar (NZD) fell during overnight trade as an anxious market mood pressured the risk-sensitive ‘kiwi’.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
