Pound (GBP) Undermined by Economic Outlook
The Pound (GBP) initially firmed yesterday following reports from the British Retail Consortium and Barclaycard revealing that retail sales recovered last month.
However, a downbeat economic outlook from the National Institute of Economic and Social Research, along with Brexit concerns and a risk-off mood, saw Sterling slip in the afternoon.
With very little data on the UK calendar today, GBP exchange rates may be influenced by Brexit headlines.
Euro (EUR) Wavers on Mixed German Data
The Euro (EUR) fluctuated yesterday, dipping at first as Germany’s balance of trade figures missed forecasts, although the surplus did widen.
The single currency managed to recover and trade sideways after economic sentiment in Germany unexpectedly improved, but the mixed report put a limit on EUR’s gains.
With no notable Eurozone data due out today, a speech from the Deutsche Bundesbank President, Dr Jens Weidmann, could cause some movement in the Euro.
US Dollar (USD) Firms amid Cautious Trade
The US Dollar (USD) trended higher against most of its rivals during yesterday’s session as a risk-off mood supported the safe-haven ‘Greenback’.
Market sentiment soured as investors digested the Federal Reserve’s latest financial stability report, which warned that stresses from China’s real estate sector could spill over into global markets.
USD investors will be looking to the latest inflation rate for fresh impetus. With US inflation set to jump from 5.4% to 5.8%, the ‘Greenback’ could gain some ground.
Canadian Dollar (CAD) Mixed despite Rising Oil
The commodity-linked Canadian Dollar (CAD) struggled for a clear direction yesterday, despite oil prices rising in the afternoon.
CAD exchange rates have risen sharply this morning, although the catalyst for this movement is unclear. Crude prices could influence the ‘Loonie’ for the rest of the session.
Australian Dollar (AUD) Slides as Risk Sentiment Sours
The Australian Dollar (AUD) fell sharply during yesterday’s European session and extended these losses overnight as a gloomy market mood weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Dented by Gloomy Market Mood
Likewise, the riskier New Zealand Dollar (NZD) fell in both the European and Asian sessions due to the current risk-averse market climate.