Pound (GBP) rudderless in absence of data
The pound (GBP) lacked a clear directional bias yesterday amid an ongoing lull in UK data.
This left the increasingly risk-sensitive currency to trade in a wide range. While Sterling was able to rise against some safer peers – including GBP/USD hitting a three-year high – it lost out elsewhere.
Sterling finishes the week with market-moving UK data still absent from the calendar, potentially leaving the pound rudderless once again.
Euro (EUR) rallies as ECB strikes hawkish tone
The euro (EUR) strengthened yesterday following the European Central Bank’s (ECB) interest rate decision.
ECB President Christine Lagarde indicated that the bank was ‘getting closer’ to its neutral rate, as well as saying that a fragmentation of global trade could increase inflation.
Turning to today, weak data from Germany could weigh on EUR. Exports and industrial production in the Eurozone’s largest economy contracted more than expected in April.
US dollar (USD) slides as jobless claims rise
The US dollar (USD) slipped yesterday after US initial jobless claims unexpectedly rose to their highest level since early October.
The latest data adds to a growing picture of a slowing US labour market, fuelling bets that the Federal Reserve may soon cut interest rates.
Today, all eyes are on the latest US non-farm payrolls figure. If we see a slowdown in US job creation in May, the ‘greenback’ could end the week on a sour note.
Canadian dollar (CAD) falls as trade deficit widens
The Canadian dollar (CAD) fell yesterday, with the ‘loonie’ dragged lower by a widening trade deficit and a weaker US dollar.
Canada’s latest jobs data could pressure CAD later today, with economists expecting a rise in unemployment last month.
Australian dollar (AUD) falls amid risk-off trade
The Australian dollar (AUD) slipped overnight as a souring market mood pressured the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) wobbles in cautious trade
The New Zealand dollar (NZD) wavered overnight, with the ‘kiwi’ avoiding steep losses despite the risk-off market mood.
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