Pound (GBP) struggles in absence of data
The pound (GBP) was subdued yesterday, with Sterling falling against its stronger rivals amid a lack of UK economic data.
Comments from Bank of England (BoE) Governor Andrew Bailey did little to help, as he raised concerns about the UK’s long-term problem with sluggish economic growth.
UK economic data remains in short supply during today’s session, potentially leaving the pound to trade without a clear directional bias.
Euro (EUR) cushioned by USD correlation
The euro (EUR) was also subdued yesterday, with the safer single currency struggling to attract support amid a surprisingly resilient market mood.
However, EUR was able to find its footing later in the session thanks to its inverse trading relationship with the US dollar (USD), as the latter currency slumped.
Today, the Eurozone’s latest industrial production release could offer EUR a modest boost if it reports an acceleration in output in May.
US dollar (USD) nosedives following soft CPI
The US dollar plunged yesterday after a weaker-than-anticipated US consumer price index dampened Federal Reserve interest rate hike bets.
Headline inflation eased from 4.2% in May to 3.5% in June, below forecasts for 3.8%. Meanwhile, core inflation cooled from 2.9% to 2.6%.
Looking forward, if the US producer price index today also indicates that price pressures are easing, USD may face further losses.
Canadian dollar (CAD) steady as oil prices hold
The crude-linked Canadian dollar (CAD) was mixed yesterday, firming against weaker peers but struggling elsewhere, as oil prices remained elevated but failed to tick higher.
Turning to today, the Bank of Canada’s (BoC) latest interest rate decision is the focus for CAD investors. Could a cautious tone from the bank see the ‘loonie’ stumble?
Australian dollar (AUD) buoyed by higher commodity prices
The Australian dollar (AUD) enjoyed support overnight as rising commodity prices and a surprisingly resilient market mood underpinned the currency.
New Zealand dollar (NZD) flat as card spending declines
The New Zealand dollar (NZD) moved mostly sideways during last night’s session, as an unexpected slump in domestic card spending stifled NZD’s upside potential.
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