US Dollar Rallies on Stronger-than-Expected PCE Price Index

Pound (GBP) Dented by Rising Consumer Credit

The Pound (GBP) weakened on Friday as the latest Bank of England (BoE) consumer credit report revealed borrowing in June rose to £1.7bn.

This far exceeded the £1bn figure expected and suggests households are struggling more than previously thought to pay bills amid rising living costs, having to borrow in greater amounts to make ends meet.

Looking ahead, the Pound may remain in a narrow range through the first half of this week, with GBP investors likely to be reluctant to make any aggressive bets ahead of the Bank of England’s (BoE) interest rate decision on Thursday.

Euro (EUR) Buoyed by Stellar Eurozone Data

The Euro (EUR) trended higher on Friday. The Eurozone’s latest GDP and inflation figures boosted the single currency, as both releases printed above forecasts.

However, the Euro’s strong negative correlation with the US Dollar (USD) meant that the single currency’s gains were ultimately capped as the latter rallied.

Meanwhile, the Euro opens this week’s session on the back foot after Germany’s latest retail sales figures revealed an unexpected decline in June.

US Dollar (USD) Jumps as PCE Price Index Impresses

The US Dollar closed last week’s session on a positive note, rallying on the back of the latest PCE price index as June’s figures beat forecasts.

Capping USD’s gains towards the end of the session was a drop in US Treasury bond yields.

In the spotlight today will be the publication of the latest ISM manufacturing PMI. If activity in the US factory sector is shown to have slowed again last month the US Dollar may weaken.

Canadian Dollar (CAD) Firms as GDP Prints Above Forecast

The Canadian Dollar (CAD) ticked higher on Friday as CAD investors welcomed Canada’s latest GDP releases, with May’s final reading and June’s preliminary figures both outperforming expectations.

Australian Dollar (AUD) Climbs amid Risk-On Trade

The Australian Dollar (AUD) ticked higher in overnight trade as a fairly upbeat market mood supported the risk-sensitive ‘Aussie’.

New Zealand Dollar (NZD) Boosted by Cheery Market Mood

Likewise, the New Zealand Dollar (NZD) trended higher last night, buoyed by the risk-positive sentiment in Asian markets.

Samuel Birnie

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