Pound (GBP) subdued amid lack of data
The pound (GBP) softened slightly yesterday as a lack of UK economic data left the currency without clear support.
UK bond market movements added to the uncertainty, with gilt yields rising above 5% before retreating in the afternoon as oil prices declined.
With UK data still absent from the calendar today, Sterling may be subdued, particularly with the UK’s GDP figures due to be published tomorrow.
Euro (EUR) uncertain amid quiet trade
The euro (EUR) wavered without a clear direction yesterday as Eurozone economic data was thin on the ground.
External drivers also failed to have a decisive impact on EUR, with the US dollar (USD) trading in a tight range and risk appetite remaining uncertain.
Turning to today, Germany’s final inflation print for July could impact EUR. With the data confirming an uptick in inflation, the single currency could enjoy support as the session unfolds.
US dollar (USD) unsure as sentiment wavers
The US dollar faced uncertain movement yesterday as a lack of US economic data left the currency to trade on market risk appetite.
This saw the safe-haven ‘greenback’ waver amid a shifting mood.
The focus today will be the latest US consumer price index. If inflation cooled last month, the US dollar could come under pressure.
Canadian dollar (CAD) finds fleeting gains amid volatile oil
The crude-linked Canadian dollar (CAD) initially firmed yesterday as oil prices briefly spiked above $90 per barrel. However, CAD eased off its highs as crude prices softened in the evening.
Turning to today, crude prices could continue to influence the ‘loonie’. Further volatility could lead to turbulence in CAD exchange rates.
Australian dollar (AUD) pressured by cautious mood
The Australian dollar (AUD) edged slightly lower overnight amid concerns that US-Iran peace negotiations had stalled.
New Zealand dollar (NZD) falls amid risk aversion
The New Zealand dollar (NZD) faced steeper losses last night, with a cautious market mood sapping demand for the risk-sensitive ‘kiwi’.
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