Pound (GBP) Mixed amid Lack of Data
The Pound (GBP) fluctuated through yesterday’s session, as an absence of UK data saw Sterling move without a clear directional bias.
This left the Pound open to movements in its paired currency, though recent falls in daily UK Covid cases may have limited GBP’s losses.
Turning to today, the Pound could gain after this morning’s employment data, with average earnings going up and the unemployment rate going down.
Euro (EUR) Flat in Absence of Data
The Euro (EUR) traded sideways against most of its rivals yesterday, with a lack of data causing hesitancy among EUR investors.
Further limiting the upside potential of the Euro was the appreciation of USD exchange rates, with the strong negative correlation between the pairing sapping EUR demand.
The single currency could find some support later this morning, as the quarterly employment rate and GDP growth rate are set to improve.
US Dollar (USD) Firms amid Risk-Off Trade
The US Dollar (USD) made some modest gains through yesterday’s session, as a slight souring of risk sentiment supported the safe-haven currency.
Weak data from China raised concerns of a slowing recovery in the world’s second largest economy, which rippled out into stock and forex markets.
Looking ahead, the ‘Greenback’ could face some headwinds this afternoon as US retail sales are expected to have contracted 0.3% in July.
Canadian Dollar (CAD) Weakens as Oil Prices Soften
The commodity-linked Canadian Dollar (CAD) slipped yesterday as oil prices continue to fall on a worsening demand outlook.
With oil prices still trending lower this morning, the Canadian Dollar could lose more ground today.
Australian Dollar (AUD) Slides as Market Sentiment Sours
The Australian Dollar (AUD) tumbled in overnight trade as the prevailing risk-off mood sapped demand for the ‘Aussie’.
New Zealand Dollar (NZD) Slumps on Cautious Market Mood
The New Zealand Dollar (NZD) also plummeted in the overnight session, with a bearish market mood weighing on the risk-sensitive ‘Kiwi’.