Pound (GBP) Ticks Higher amid Risk-Positive Trade
The Pound (GBP) firmed against many of its peers yesterday as an upbeat mood supported the risk-sensitive currency.
However, Sterling pared its gains in the afternoon as ongoing concerns about the UK economy capped any meaningful upside.
Later on, the Bank of England’s (BoE) Financial Stability Report, along with speeches from policymakers, could impact the Pound. Before then, we have the UK’s final services PM. Could the score be revised lower, like the manufacturing PMI was last week?
Euro (EUR) Undermined by Norwegian Energy Strikes
The Euro (EUR) wavered yesterday, as energy security concerns offset a cheery mood in European markets.
European gas prices jumped to a four-month high as Norwegian oil and gas workers prepare to go on strike. EUR investors are already concerned that a tight energy market could tip the Eurozone into a recession, with Russia cutting supplies to the continent.
As the Eurozone services PMI this morning confirmed a sharp slowdown in activity, EUR could face headwinds.
US Dollar (USD) Muted on Independence Day
The US Dollar (USD) dipped and then recovered yesterday, moving sideways overall, amid thin trading conditions.
American markets were closed for the Independence Day federal holiday.
An expected rise in US factory orders this afternoon could boost the ‘Greenback’. Until then, risk appetite may drive the safe-haven currency.
Canadian Dollar (CAD) Mixed on Poor PMI and Rising Oil Prices
The oil-linked Canadian Dollar (CAD) wobbled yesterday as a rise in crude prices helped to cushion the downside of a larger-than-forecast drop in Canada’s manufacturing PMI.
Amid a lack of Canadian data today, the ‘Loonie’ could trade primarily on oil price dynamics.
Australian Dollar (AUD) Pares Gains following RBA Decision
The Australian Dollar (AUD) firmed ahead of the Reserve Bank of Australia (RBA) meeting last night, only to drop following the decision.
The RBA raised interest rates by 50 basis points, as expected, and did not signal any change in policy plans. This disappointed AUD investors who’d hoped for a more hawkish outlook.
New Zealand Dollar (NZD) Wobbles amid Poor Data and Upbeat Mood
The New Zealand Dollar (NZD) wavered overnight as a moderately upbeat market mood helped to offset the downside of a larger-than-forecast fall in business confidence.