Pound (GBP) Wobbles amid Political Uncertainty
The Pound (GBP) wavered yesterday as GBP investors reacted to the ‘partygate’ report. Initially, Sterling slipped amid the political uncertainty. However, GBP was able to recover as it became increasingly likely that Prime Minister Boris Johnson will survive the scandal.
In addition, a changing market mood added to GBP’s mixed movement.
Today, UK economic data is thin on the ground. As a result, domestic news may continue to influence the Pound. Reports suggest the Treasury will make a statement on a cost-of-living support package, including a windfall tax on energy companies. Could such an announcement support Sterling?
Euro (EUR) Slips on Poor German Data
The Euro (EUR) softened yesterday after Germany’s consumer climate indicator for June worried EUR investors.
Consumer sentiment in Europe’s largest economy remains at an all-time low as Russia’s invasion of Ukraine and soaring inflation weigh heavily on morale.
With no Eurozone data due out today, EUR may struggle for a clear direction.
US Dollar (USD) Mixed ahead of FOMC Minutes
The US Dollar (USD) was mixed yesterday as USD investors awaited the release of the Federal Open Market Committee (FOMC) meeting minutes.
Adding to the safe-haven currency’s uncertain direction, risk sentiment wavered and US durable goods orders printed slightly below expectations, showing a 0.4% increase in April.
The latest estimate of US GDP growth could cause some movement today, particularly if it surprises markets.
Canadian Dollar (CAD) Directionless amid Lack of Data
The Canadian Dollar (CAD) traded erratically yesterday as a lack of Canadian economic data left the currency open to volatility.
Looking ahead, this afternoon’s retail sales figures are forecast to show a 1.4% rise. Such a result could bolster the Canadian Dollar.
Australian Dollar (AUD) Softens as Sentiment Sours
The Australian Dollar (AUD) wavered lower overnight as a souring market mood weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Falls amid Cautious Trade
Likewise, the risky New Zealand Dollar (NZD) slipped overall in overnight trade due to the increasingly bearish tone among traders.