Pound (GBP) Softens amid Warnings for British Firms
The Pound (GBP) edged lower against the majority of its peers yesterday amid warnings that hundreds of thousands of small British businesses could buckle under the pressure of rising costs.
The Federation of Small Businesses (FSB) said that the situation is a ‘ticking timebomb’, with half a million firms at risk of going bust in a matter of weeks.
The UK’s latest consumer credit figures could impact GBP today. Otherwise, domestic political and economic headlines may influence Sterling.
Euro (EUR) Firms on Hot Inflation Figures
The Euro (EUR) fluctuated yesterday, trending higher overall, despite Eurozone economic sentiment remaining near its lowest level since March 2021.
EUR also shrugged off energy-security fears as the EU worked towards a Russian oil embargo and Gazprom prepared to cut off gas supplies to the Netherlands. The upside came as Spanish and German inflation exceeded forecasts ahead of today’s Eurozone release.
The Eurozone flash CPI is in focus today. Economists expect inflation to have risen from 7.4% to 7.7% this month ahead of the ECB decision next week. If the CPI prints higher than forecast, EUR could climb.
US Dollar (USD) Struggles amid Risk-On Mood
The US Dollar (USD) wavered lower yesterday as a bullish tone in markets kept pressure on the safe-haven currency.
In the absence of US economic data, and with Federal Reserve rate hike bets fading, the ‘Greenback’ lacked support.
A forecast drop in US consumer confidence this afternoon could push USD lower.
Canadian Dollar (CAD) Rises as Oil Ticks Higher
The Canadian Dollar (CAD) zigzagged higher yesterday as stronger oil prices boosted the crude-linked currency.
Today, Canada’s latest GDP figures are in the spotlight for CAD investors. Will slowing economic growth weigh on the ‘Loonie’?
Australian Dollar (AUD) Wavers despite Upbeat Data
The Australian Dollar (AUD) wobbled overnight, despite Australian corporate profits massively beating forecasts. China’s PMIs also exceeded expectations, although they still revealed a contraction in May.
New Zealand Dollar (NZD) Slips as Business Confidence Slumps
The New Zealand Dollar (NZD) was subdued overnight. An unexpected slump in New Zealand business confidence hit the ‘Kiwi’, although a risk-on mood limited losses.