Pound (GBP) Muted amid Supply Chain Concerns
The Pound (GBP) was left mostly rangebound through yesterday’s trading session, as investors expressed concern over the UK’s supply chain problems.
GBP traders are growing increasingly unsettled by reports about disruption to the UK’s supply chain, amidst fears these issues could stifle the country’s economic recovery in the second half of 2021.
Looking ahead, in the absence of any notable GBP data releases, movement in the Pound may be dictated by domestic coronavirus developments. Potentially leaving Sterling vulnerable to losses if daily infections continue to rise.
Euro (EUR) Slips on Underwhelming German Data
The Euro (EUR) edged lower on Wednesday, after the latest German IFO business climate index printed below expectations in August, raising concerns over the momentum of the Eurozone’s largest economy.
Reinforcing this downside were some dovish comments from European Central Bank (ECB) chief economist Philip Lane, in which he suggested it is ‘too early’ for the bank to start discussing the end of its pandemic-era stimulus measures at the ECB’s September policy meeting.
Turning to today’s session, the Euro could face some additional pressure with the publication of the minutes from the ECB’s July policy meeting, which are likely to reaffirm the bank’s currency dovish bias.
US Dollar (USD) Rebound as US Data Beats Forecast
The US Dollar (USD) trended higher against the majority of its peers yesterday, after the latest US durable goods orders release printed above expectations.
Goods order growth contracted 0.1% last month, slightly beating forecasts for a large slump of 0.3%, which alongside a souring market mood, bolstered demand for the ‘Greenback’.
Top of the agenda today will be the start of the Fed’s Jackson Hole Symposium. While Fed Chair Jerome Powell will not deliver his key note speech until tomorrow, USD investors will be keeping a close eye on proceedings for any hints as to the US central bank’s future tapering plans.
Canadian Dollar (CAD) Slips as Oil Rebound Stalls
The Canadian Dollar (CAD) ticked lower on Wednesday as the recent recovery in oil prices slowed to a crawl, limiting the appeal of the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Slips amid Domestic Coronavirus Concerns
The Australian Dollar (AUD) fell back overnight on Wednesday, snapping a three-day winning streak amidst concerns over Australia’s recent coronavirus outbreak, after the state of New South Wales reported a record rise in daily infections.
New Zealand Dollar (NZD) Weakens in Bearish Trade
The New Zealand Dollar (NZD) also retreated in overnight trade, as weakening market risk appetite limited the appeal of the ‘Kiwi’.