Pound (GBP) Softens amid Worrying Lending Data
The Pound (GBP) fluctuated yesterday, heading lower against its stronger peers, after some concerning lending data from the Bank of England (BoE).
While mortgage approvals fell in April, consumer credit unexpectedly rose. Economists inferred that households are taking on debt to deal with surging costs – a worrying prospect.
Aside from the final manufacturing PMI, there’s no UK data out today. As a result, domestic news may influence the Pound. Will more Tory MPs call on Boris Johnson to resign?
Euro (EUR) Falls despite Hot CPI Print
The Euro (EUR) slipped against many of its rivals yesterday as hotter-than-forecast Eurozone inflation spooked EUR investors. Although the CPI increases the likelihood that the European Central Bank (ECB) will raise interest rates, there are fears that high inflation and slow growth could trigger a recession in the Euro area.
In addition, energy security fears may have subdued EUR. Gazprom cut off gas supplies to the Netherlands and the EU agreed on a partial embargo of Russian oil.
This morning, an expected drop in the Eurozone unemployment rate could support the single currency.
US Dollar (USD) Edges Up amid Risk-Off Trade
The US Dollar (USD) found some success against its weaker peers yesterday as a souring market mood boosted demand for the safe-haven ‘Greenback’.
The latest US consumer confidence data added to the mixed tone around USD in the afternoon. Although morale beat forecasts, it still declined.
The ISM manufacturing PMI and JOLTs job openings could cause some movement today. Meanwhile, risk sentiment could continue to impact USD exchange rates.
Canadian Dollar (CAD) Firms amid Mixed GDP Data
The Canadian Dollar (CAD) rose yesterday, despite the latest GDP results presenting a mixed picture. Although GDP in March exceeded forecasts, April’s preliminary score and the first-quarter GDP growth rate both came in lower than expected.
Today, the Bank of Canada (BoC) interest rate decision is in focus. Economists are almost certain of a half-percentage-point rate rise, so CAD investors’ focus may be on the bank’s forward guidance.
Australian Dollar (AUD) Wobbles despite Above-Forecast GDP
The Australian Dollar (AUD) wavered overnight, despite stronger-than-expected GDP results, as global inflation concerns weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Slips as Market Mood Sours
The New Zealand Dollar (NZD) stumbled in overnight trade as a cautious market mood saw traders shun to risky ‘Kiwi’.