Pound (GBP) Posts Gains despite Bearish Trade
The Pound (GBP) was mixed yesterday, rising against its weaker rivals amid a strong pickup in orders growth for UK manufacturers.
However, manufacturing firms’ confidence slumped, limiting GBP’s gains. Additionally, a risk-off mood amid recession fears also kept a lid on Sterling.
This morning, the latest UK retail sales report showed an unexpected increase in sales. This could support the Pound today.
Euro (EUR) Buoyed by ECB Meeting Minutes
The Euro (EUR) also found limited success yesterday despite a sell-off in European stock markets.
Supporting the Euro were the April meeting accounts from the European Central Bank (ECB), which struck a broadly hawkish tone.
Looking ahead, the Eurozone’s consumer confidence flash for May could dent EUR if it shows that morale remains low.
US Dollar (USD) Slides on US Economy Concerns
The US Dollar (USD) slumped during yesterday’s session, despite a risk-off market mood, amid fears that the US economy could be less strong than initially thought.
Disappointing earnings from US retail giants and a larger-than-forecast rise in initial jobless claims hammered USD exchange rates.
A lack of US data today could leave the ‘Greenback’ without much support. Meanwhile, an upbeat mood in European markets could put pressure on USD.
Canadian Dollar (CAD) Slips as Market Mood Sours
The Canadian Dollar (CAD) fell during yesterday’s trade as widespread risk aversion and volatile oil prices undermined the ‘Loonie’.
With no notable Canadian data out today, crude prices could drive the commodity-linked currency.
Australian Dollar (AUD) Bounces as Risk Sentiment Shifts
The Australian Dollar (AUD) experienced some volatility in overnight trade, dipping and then rising towards the end of the session, as an improving market mood supported the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Strengthens on Unexpected Trade Surplus
The New Zealand Dollar (NZD) rose overnight after New Zealand’s latest trade balance posted an unexpected surplus.