Pound (GBP) Fluctuates Following Upbeat GDP Figures
The Pound (GBP) initially got off to a strong start yesterday. Rallying on the back of the UK’s latest GDP figures after they reported a surprisingly strong expansion of growth in May.
However Sterling was unable to hold on to these gains for long, with the currency falling foul of some political uncertainty later in the afternoon.
Looking ahead, in the absence of any notable GBP data releases today, it’s likely the Pound will continue to be driven by political developments through today’s session.
Euro (EUR) Fluctuates amid USD Volatility
The Euro (EUR) fluctuated on Wednesday. The single currency initially firmed on the back of stronger-than-expected industrial production figures from the Eurozone.
A spike in the US Dollar then briefly pushed the EUR/USD exchange rate below parity, before a subsequent reversal in the ‘Greenback’ triggered a rebound in the single currency.
In the absence of any notable EUR data, the Euro may struggle to find direction today, particularly if concerns over European energy security persist.
US Dollar (USD) Volatile Following Hotter-than-Expected Inflation
The US Dollar (USD) traded in a wide range through yesterday’s session, following the publication of the latest US inflation figures.
USD exchange rates spiked after data showed US inflation jumped to 9.1% last month. A brief correction then saw the ‘Greenback’ retreat at the end of the European session before rallying again overnight.
Coming up today, will an uptick in the latest US PPI figures lend some support to the US Dollar later this afternoon?
Canadian Dollar (CAD) Firms on BoC’s Aggressive Rate Hike
The Canadian Dollar (CAD) ticked higher on Wednesday after the Bank of Canada (BoC) shocked markets by raising interest rates by 100bps.
The ‘Loonie’s gains may have been stronger had the commodity-linked currency not been suppressed by another downturn in oil prices.
Australian Dollar (AUD) Jumps on Upbeat Employment Figures
The Australian Dollar (AUD) shot higher overnight on Wednesday, in response to Australia’s latest jobs report.
June’s figures reported domestic unemployment fell to a record low of 3.5%, bolstering expectations for more aggressive interest rate hikes from the Reserve Bank of Australia (RBA).
New Zealand Dollar (NZD) Buoyed by Upbeat Trade
The New Zealand Dollar (NZD) also firmed in overnight trade. Thye ‘Kiwi’ benefiting from a risk-positive mood and the uptick in the ‘Aussie’.