Pound (GBP) Edges Higher as Fuel Crisis Eases
The Pound (GBP) staged a modest recovery yesterday as the UK’s fuel crisis showed signs of stabilising, despite demand remaining at unprecedented levels.
However, Sterling’s gains were capped as the UK’s supply crisis continues to weigh on GBP sentiment amid fears that it will stifle the UK’s economic recovery.
Looking ahead, the UK’s final manufacturing PMI is unlikely to influence the Pound unless the results surprise investors. Otherwise, the UK’s supply issues may continue to dictate GBP exchange rates.
Euro (EUR) Stumbles as Energy Fears Rattle EUR Investors
The Euro (EUR) slipped yesterday as concerns over the economic impact of the European energy crisis weighed on the single currency.
Germany’s inflation rate failed to bolster the Euro, despite printing at a fresh 28-year high of 4.1%, as the European Central Bank (ECB) remains reluctant to tighten monetary policy.
Turning to today, Germany’s retail sales printed below expectations, which may dent the Euro. In addition, inflation in the Eurozone is expected to hit 3.3%, which could add to inflationary concerns.
US Dollar (USD) Softens amid Risk-On Market Mood
The US Dollar (USD) retreated against most of its rivals during yesterday’s session but still held close to multi-month highs.
The slight pullback came as risk appetite improved, which dampened demand for the safe-haven currency.
A number of US data releases out today could affect USD exchange rates. Personal spending and income are expected to have risen slightly in August, while the ISM manufacturing PMI is forecast to ease.
Canadian Dollar (CAD) Boosted by Jump in Oil Prices
The Canadian Dollar (CAD) spiked yesterday afternoon, as a surge in oil prices boosted the commodity-linked ‘Loonie’.
This afternoon, Canada’s GDP is expected to have contracted by 0.2% in July. If forecasts are accurate, CAD exchange rates may suffer.
Australian Dollar (AUD) Dips as PMIs Miss Forecasts
The Australian Dollar (AUD) dipped overnight as both Australia’s Ai Group and Markit manufacturing PMIs printed below expectations.
New Zealand Dollar (NZD) Rangebound on Tepid Market Mood
The New Zealand Dollar (NZD) traded in a narrow range during the overnight session amid a mixed market mood.