US Dollar Firms despite Dovish FOMC Meeting Minutes

Pound (GBP) Rudderless amid Lack of Data 

The Pound (GBP) traded in a wide range yesterday, struggling to hold onto any significant gains, with no notable UK economic data to drive movement in GBP. 

The lack of clear directional bias came amid both economic optimism in the UK and worries about rising cases of coronavirus. 

With no data releases due from the UK today, coronavirus, business and Brexit headlines could influence GBP exchange rates. 

Euro (EUR) Stumbles on Lacklustre Data 

The Euro (EUR) dipped against its key rivals yesterday, as more downbeat German data weighed on the single currency. 

Germany’s industrial production decreased by 0.3% for the second consecutive month, missing forecasts of a 0.5% increase, which saw the Euro start the session on the defensive. 

EUR could face more challenges today. Germany’s trade surplus unexpectedly narrowed by €3bn in May, and experts continued to warn about the spread of the coronavirus in Europe.  

US Dollar (USD) Gains on Cautious Market Mood 

The US Dollar (USD) strengthened yesterday, as an increasingly cautious market sentiment amplified demand for the safe-haven currency. 

The ‘Greenback’ was able to shrug off lower-than-expected job openings data and a disappointing economic optimism index, as well as the dovish Federal Open Market Committee (FOMC) meeting minutes, in which most policymakers expressed the need for patience. 

Looking ahead, the latest initial jobless claims data from the US is expected to show another drop in unemployment benefits claimants, which could further support the US Dollar. 

Canadian Dollar (CAD) Slides as Oil Prices Continue to Drop 

The Canadian Dollar (CAD) fell again yesterday as oil prices continue to decline in the wake of the OPEC+ supply dispute. 

Canada’s Ivey PMI came in above expectations to lend some support to the ‘Loonie’, but this was not enough to prevent the currency’s downside. 

With no Canadian data due out today, oil prices will likely drive most movement in the Canadian Dollar, which could mean further losses and volatility. 

Australian Dollar (AUD) Slumps on Cautious Trade 

The Australian Dollar (AUD) tumbled in overnight trade, hitting a one-year low against the Pound, as a decreased appetite for risk drained demand for the ‘Aussie’. 

New Zealand Dollar (NZD) Declines on Risk-Off Sentiment 

The New Zealand Dollar (NZD) was also down overnight, as a bearish market mood weighed on the risk-sensitive ‘Kiwi’.