Pound (GBP) finds uneven gains amid BoE decision
The pound (GBP) was mixed yesterday, with Sterling rising against its weaker peers but facing mixed movement elsewhere, as markets responded to the Bank of England’s (BoE) interest rate decision.
While three policymakers voted to hike rates, BoE Governor Andrew Bailey said there was little evidence that inflationary pressures were becoming embedded in the UK economy.
Sterling ends the week with little in the way of UK economic data. As a result, movement in the pound may be limited.
Euro (EUR) uncertain despite strong GDP
The euro (EUR) traded without a clear trajectory yesterday, with stronger-than-forecast Eurozone GDP figures failing to boost the common currency.
EUR may have been hit by geopolitical jitters, after a Russian missile crashed in Poland.
Attention turns to the Eurozone’s latest consumer price index today. A forecast uptick in inflation in July could offer EUR modest support.
US dollar (USD) slips as data dents Fed rate hike bets
The US dollar (USD) fell on Thursday as markets continued to trim expectations for Federal Reserve rate hikes this year.
The latest US GDP figures showed that growth unexpectedly slowed in the second quarter, while June’s core PCE price index revealed cooling inflation last month.
Looking ahead, the final US consumer sentiment index for July could influence the ‘greenback’ today. If it confirms a sharp improvement in morale, USD could regain some ground.
Canadian dollar (CAD) dragged lower by USD correlation
The Canadian dollar (CAD) weakened yesterday as the currency was dragged down by its positive correlation with the declining US dollar.
Canada’s latest GDP figures are in the spotlight for CAD investors today. If economic growth edged up in June, the ‘loonie’ may enjoy some support.
Australian dollar (AUD) firms as producer prices surge
The Australian dollar (AUD) edged up overnight after Australian producer prices surged in the second quarter, boosting bets on further interest rate increases from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) steady amid risk-positive trade
The New Zealand dollar (NZD) traded sideways during Thursday’s Asian trading session, holding near multi-week highs against some peers, as a cautiously upbeat mood underpinned NZD.
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