Pound (GBP) Falls amid Worrying Public Finance Figures
The Pound (GBP) fell sharply at the start of yesterday’s session following the latest public sector borrowing figures. The data revealed that the UK public finances are in a worse position than official forecasts expected.
Despite some fluctuations throughout the day, due to market volatility, Sterling lost ground overall.
The Pound opens today’s session on the back foot after the UK’s latest retail sales figures reported another contraction in sales growth. Coming up, forecasters expect the flash PMIs for June to show a decline in business activity, which could also dent Sterling.
Euro (EUR) Rocked by ECB Decision
The Euro (EUR) was extremely volatile yesterday as markets reacted to the European Central Bank’s (ECB) half-point rate rise.
The 0.5% increase in interest rates came as a surprise to markets, causing the single currency to jump higher. However, concerns that an impending recession could cause the ECB to halt its tightening cycle dented EUR, with the single currency relinquishing its gains.
The Eurozone’s PMIs are in focus for EUR investors this morning. Will another slowdown cause the Euro to slip?
US Dollar (USD) Fluctuates as Market Mood Shifts
The safe-haven US Dollar (USD) wavered higher yesterday as the market sentiment shifted, with a downbeat mood prevailing overall.
An unexpected uptick in initial jobless claims may have limited USD’s gains. The latest report suggests that the American labour market may be cooling, with new unemployment claims rising for the third consecutive week.
Risk appetite could drive the safe-haven Dollar through most of today’s trade. In the afternoon, the latest US flash PMIs from S&P Global could also cause some movement.
Canadian Dollar (CAD) Softens as Oil Prices Decline
The Canadian Dollar (CAD) fell against its stronger peers yesterday as a drop in crude prices dented the commodity-linked currency.
Turning to today, Canada’s latest retail sales could boost the ‘Loonie’. Economists expect sales to have risen by 1.6% in May.
Australian Dollar (AUD) Dented by Lacklustre PMIs
The Australian Dollar (AUD) was undermined by the publication of Australia’s latest PMIs overnight on Thursday as July’s flash figures suggest growth in the country’s private sector also stalled.
New Zealand Dollar (NZD) Muted amid Cautious Mood
The New Zealand Dollar (NZD) struggled to attract support overnight as a cautious market mood saw investors shy away from the risk-sensitive ‘Kiwi’.