Pound (GBP) trades sideways on UK consumer credit figures
The pound (GBP) was muted yesterday, following the release of the Bank of England’s (BoE) latest consumer credit report.
While a larger-than-expect uptick in credit suggests a level of resilience in consumer spending, some analysts warned that the recent rise may be linked to the uptick in unemployment, with households putting themselves into debt to cover basic necessities.
UK data is in short supply today, but high-impact releases in the US and Eurozone are likely to have a wider impact on the currency market and could influence Sterling sentiment.
Euro (EUR) slides as EU-US trade deal criticism mounts
The euro (EUR) stumbled again on Tuesday amid growing backlash against the EU-US trade deal announced over the weekend.
EU leaders grew more vocal in their criticism yesterday, with the bulk suggesting it overly favours the US and will still see a 15% tariff placed on the majority of EU exports.
The EUR selling bias is likely to remain firmly in place today as the Eurozone’s latest GDP figures are expected to report growth in the bloc flatlined in the second quarter.
US dollar (USD) extends rally ahead of Fed rate decision
The US dollar (USD) remained on the front foot yesterday, stretching its recent winning streak into its fifth day.
The ‘greenback’ continued to appreciate amid USD investor optimism surrounding the EU-US trade agreement, as well as the latest round of US-China trade negotiations in Sweden.
A robust US GDP print, coupled with hawkish signals from the Federal Reserve, could see the US dollar rally continue.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) continued to rise in tandem with oil prices on Tuesday, with crude striking a two-week high amid the prospect of US secondary sanctions on Russia.
The Bank of Canada (BoC) will deliver its latest interest rate decision later today, with the ‘loonie’ potentially strengthening if the bank leaves its policy untouched and its outlook remains broadly hawkish.
Australian dollar (AUD) stable despite softer-than-expected inflation
The Australian dollar (AUD) traded sideways overnight on Tuesday. While a weaker-than-expected domestic inflation print cemented bets for an August rate cut from the Reserve Bank of Australia (RBA), AUD investors were reluctant to adjust their positions ahead of today’s US risk events.
New Zealand dollar (NZD) flat following uptick in business confidence
The New Zealand dollar (NZD) was also muted in overnight trade as an uptick in domestic business confidence was overshadowed by upcoming US data.) was also muted in overnight trade amid the risk-off market mood.
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