Pound (GBP) Subdued as Retail Sales Volumes Drop
The Pound (GBP) ticked lower during yesterday’s session after the release of the Confederation of British Industry’s (CBI) latest distributive trades index.
July’s index reported the UK suffered its fourth consecutive contraction in retail sales volumes in July, highlighting the impact of the UK’s cost of living crisis.
Looking ahead, Sterling may continue to struggle to attract support today as a lack of data is likely to see domestic political uncertainty limit the Pound’s upside potential.
Euro (EUR) Slumps on Recession Fears
The Euro (EUR) tumbled through Tuesday’s trading session amid renewed fears of an imminent Eurozone recession.
This came amid concerns the EU is facing a gas shortage as Russia prepared to reduce gas flows through the Nord Stream pipeline to just 20%.
In the continued absence on any notable EUR data, its likely that concerns over European energy security may continue to act as a headwind for the Euro, particularly as the reduction in gas flows between Germany and Russia comes into effect today.
US Dollar (USD) Strengthens ahead of Fed Rate Hike
The US Dollar (USD) rallied yesterday, strengthening as demand for the safe-haven currency was bolstered by a prevailing risk-off mood.
The souring mood came as the International Monetary Fund slashed its global growth forecasts, whilst also warning that risk to the outlook remain ‘overwhelmingly tilted to the downside’.
Centre stage today will be the Federal Reserve’s latest interest rate decision. The Fed is widely expected to announce another 75bps rate hike this evening. Coupled with some hawkish forward guidance this could help to bolster the US Dollar today.
Canadian Dollar (CAD) Buoyed by Rising Oil Prices
The Canadian Dollar (CAD) continued to tick higher on Tuesday. Another uptick in oil prices underpinning demand for the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Slumps as Inflation Prints Below Expectations
The Australian Dollar (AUD) took a dive overnight on Tuesday, following the publication of Australia’s consumer price index.
Inflation climbed to 6.1% in the second quarter. A new 20-year high but below forecasts it would rise to 6.2%. Disappointing AUD bulls and dragging on the ‘Aussie’
New Zealand Dollar (NZD) Falls in Tandem with AUD
The New Zealand Dollar (NZD) fell in sympathy with the Australian Dollar overnight, with the ‘Kiwi’ striking its worst levels so far this week.