Pound (GBP) Wavers amid Lack of Data
The Pound (GBP) fluctuated through yesterday’s session, weakening against most of its major rivals overall, as a lack of data left Sterling open to losses.
However, ongoing optimism in the UK’s progress out of the pandemic may have limited GBP’s downside.
In the absence of any important data from the UK today, the Pound may find itself struggling for direction once again.
Euro (EUR) Muted as German Data Misses Forecasts
The Euro (EUR) was subdued during yesterday’s session after Germany’s balance of trade figure missed market forecasts.
Despite showing a widening trade surplus, the report fell short of expectations by €0.5bn to print at €16.3bn for June. While this is €3.8bn more than the previous month’s, it wasn’t enough to give the Euro a meaningful boost.
Coming up, the single currency could face headwinds today as both the Eurozone’s and Germany’s economic sentiment indexes are expected to post significant drops. Declining investor confidence could dent the Euro.
US Dollar (USD) Climbs on Record Job Openings
The US Dollar (USD) had a rocky start yesterday morning but rallied in the afternoon on the latest US job openings data, hitting a four-month high against the Euro and a two-week high against the Pound.
The JOLTs job openings for June beat forecasts to come in at a record high of 10.073 million, signifying the continued economic recovery in the US and boosting USD.
Turning to today, the US nonfarm productivity report could support the ‘Greenback’, as productivity is expected to have risen again by 3.5% in the second quarter of this year.
Canadian Dollar (CAD) Ticks Higher as Oil Recovers
The Canadian Dollar (CAD) made modest gains against many of its peers yesterday amid a slight recovery in oil prices.
With no Canadian data out today, oil prices could continue to drive movement in the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Recovers from Slump in Business Confidence
The Australian Dollar (AUD) slipped overnight after Australia’s business confidence plunged from 11 to -8, but the ‘Aussie’ then managed to recoup its losses with no clear catalyst for the upside.
New Zealand Dollar (NZD) Softens on Risk-Off Trade
The New Zealand Dollar (NZD) ticked lower in overnight trade, as global Covid concerns drained demand for the risk-sensitive ‘Kiwi’.