Pound (GBP) Firms despite Supply Chain Warnings
The Pound (GBP) gained against many of its rivals yesterday, with no clear catalyst for the movement.
The upside came amid warnings from business groups that UK supply chains face a ‘perfect storm’ of high prices and labour shortages due to the pandemic and Brexit.
Turning to today, the final services PMI is forecast to confirm that activity in the UK’s service sector slowed down last month, which could drag on the Pound.
Euro (EUR) Weakens in Absence of Data
The Euro (EUR) fell against most of its major rivals during yesterday’s session, as a lack of significant data releases left the single currency without much energy.
The downside may have been cushioned somewhat by the negative correlation between the Euro and the US Dollar (USD), as the latter weakened over the course of yesterday’s session.
Turning to today, the single currency could face more challenges as retail sales growth is expected to have slowed from 1.5% in June to 0.1% in July.
US Dollar (USD) Suffers amid Upbeat Market Mood
The US Dollar (USD) slipped further yesterday, hitting a two-week low against the Pound and a fresh one-month low against the Euro.
The downside came amid a risk-on market mood which was seemingly boosted by some fairly positive data releases from the US, as non-farm productivity, initial jobless claims and factory orders all printed marginally above expectations.
The US non-farm payrolls release is in the spotlight for USD investors today. Economists expect the US economy to have added 750,000 jobs last month. But after the ADP employment change miss earlier this week, could the real figure disappoint?
Canadian Dollar (CAD) Buoyed by Jump in Oil Prices
The Canadian Dollar (CAD) climbed yesterday afternoon as the commodity-linked currency was boosted by a $2 rise in oil prices.
With no data from Canada due out today, the price of oil is likely to exert a strong influence over CAD exchange rates.
Australian Dollar (AUD) Gains amid Risk-On Sentiment
The Australian Dollar (AUD) firmed overnight as a prevailing risk-on mood and rising commodities prices boosted the ‘Aussie’.
New Zealand Dollar (NZD) Strengthens on Upbeat Market Mood
The New Zealand Dollar (NZD) also gained ground in overnight trade, as an increased appetite for risk among investors fuelled demand for the riskier ‘Kiwi’.