Pound (GBP) Wobbles ahead of Major Data Releases
The Pound (GBP) wavered yesterday as GBP investors took a breather after last week’s drama and ahead of more potential volatility later in the week.
Adding to Sterling’s lack of direction, a risk-on mood supported the Pound while worries about UK rail strikes undermined the currency.
Today’s latest industrial trends orders from the Confederation of British Industry (CBI) could cause some movement. However, markets may instead focus on the economic fallout of today’s strike action.
Euro (EUR) Rangebound amid ECB Lagarde Testimony
The Euro (EUR) also fluctuated during yesterday’s session as EUR investors paid close attention to European Central Bank (ECB) President Christine Lagarde’s testimony before European Parliament.
While Lagarde acknowledged that the Eurozone faced recession risks, she said that this was not the ECB’s baseline scenario. She also said the bank would address fragmentation, but did not give details how. EUR investors seemed ambivalent.
With no notable Eurozone data out today, EUR may struggle for direction.
US Dollar (USD) Flat amid Federal Holiday
The US Dollar (USD) was rangebound yesterday amid thin trading conditions as American markets were closed for the Juneteenth federal holiday.
Despite this, and a risk-on market mood, the safe-haven US Dollar managed to avoid serious losses.
This evening, two speeches from Federal Reserve policymaker Tom Barkin could influence USD. Could Barkin boost the ‘Greenback’ with some hawkish comments?
Canadian Dollar (CAD) Flickers as Oil Fluctuates
The crude-linked Canadian Dollar (CAD) wobbled yesterday as oil prices fluctuated in a narrow range.
Turning to today, will a forecast recovery in Canadian retail sales boost the ‘Loonie’?
Australian Dollar (AUD) Mixed amid RBA Comments
The Australian Dollar (AUD) was mixed overnight. An upbeat mood in Asian trading supported the risk-sensitive ‘Aussie’. However, Reserve Bank of Australia (RBA) Governor Philip Lowe pushed back on aggressive rate hike bets.
New Zealand Dollar (NZD) Undermined by Consumer Confidence Slump
The New Zealand Dollar (NZD) also struggled for a clear direction as a far larger-than-forecast drop in consumer confidence offset the bullish market mood.