Pound (GBP) Slips on Mixed Economic Data
The Pound (GBP) weakened against many of its peers yesterday amid mixed UK data, despite UK GDP surging by 4.8% in the second quarter of 2021.
While recent growth has been rapid, UK GDP is still 4.4% behind pre-pandemic levels. Meanwhile, industrial production, balance of trade and business investment data all missed expectations, weakening Sterling as a result.
With no data out today, the Pound could be influenced by domestic coronavirus news. Will the continued rise in Covid cases worry GBP investors?
Euro (EUR) Muted on Industrial Production Miss
The Euro (EUR) traded in a narrow range yesterday as below-expected industrial production figures left the single currency without much support.
Eurozone industrial production contracted for the second consecutive month, printing marginally worse than the -0.2% expected to come in at -o.3%, with global supply chain disruption being a major cause of the slump.
The Euro could get a boost later this morning as the Eurozone’s trade surplus is expected to widen sharply from €7.5bn to €18.2bn.
US Dollar (USD) Firms as Jobless Claims Fall
The US Dollar (USD) strengthened through yesterday’s session as initial jobless claims fell for the third time in a row to meet market expectations.
The figures indicate a strong recovery in the US labour market, especially when paired with last week’s forecast-beating nonfarm payrolls.
Turning to today, the University of Michigan consumer sentiment index is expected to hold at a six-month low, which could weaken USD.
Canadian Dollar (CAD) Supported by Steady Oil Prices
The commodity-linked Canadian Dollar (CAD) found some support yesterday as oil prices held around $69 a barrel, allowing the ‘Loonie’ to gain against some of its weakening rivals.
With still no significant Canadian data due out, oil prices could be CAD’s primary influence as this week’s session comes to a close.
Australian Dollar (AUD) Rangebound amid Tepid Market Mood
The Australian Dollar (AUD) traded mostly sideways overnight as risk sentiment held steady, with rising Covid cases offset by a seemingly strong global recovery.
New Zealand Dollar (NZD) Steady following Manufacturing PMI
The New Zealand Dollar (NZD) also held firm in overnight trade after the country’s manufacturing PMI printed above expectations.