Pound (GBP) unsure as investors eye data
The pound (GBP) lacked a clear directional bias yesterday as British economic data was in short supply.
GBP investors were also reluctant to place any big bets on Sterling amid a flurry of high-impact releases due later in the week.
Today brings the first of these releases – the UK’s latest jobs report. The pound has stumbled this morning despite signs that the labour market remains broadly stable. Rising government borrowing costs seem to be dragging on GBP.
Euro (EUR) undermined by USD strength
The euro (EUR) faced pressure yesterday as the common currency suffered from its strong negative correlation with the US dollar (USD), as the latter currency strengthened.
Meanwhile, a lack of Eurozone economic data saw EUR struggling to attract support.
Germany’s latest ZEW economic sentiment index is the focus for EUR investors today. Could a fifth consecutive improvement see the euro regain ground?
US dollar (USD) climbs amid Fed rate hike bets
The US dollar marched higher on Monday as investors bet on the currency ahead of an expected interest rate hike from the Federal Reserve later in the week.
The safe-haven ‘greenback’ also attracted support from a risk-averse market mood, as events in the Middle East soured sentiment.
Looking ahead, the US dollar may remain supported today, if a risk-off market mood prevails.
Canadian dollar (CAD) stifled by inflation figures
The crude-linked Canadian dollar (CAD) initially rose yesterday following a jump in oil prices. However, softer inflation figures undermined the ‘loonie’ in the afternoon.
Turning to today, CAD could catch bids if crude prices remain elevated.
Australian dollar (AUD) retreats amid risk-off trade
After recouping some losses yesterday evening, the Australian dollar (AUD) then fell back again overnight amid a risk-off market mood.
New Zealand dollar (NZD) hits two-month lows amid risk aversion
The New Zealand dollar (NZD) also declined overnight as a risk-off mood prevailed, with the ‘kiwi’ hitting two-month lows against some peers.
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