Pound (GBP) Muted as Strikes Continue
The Pound (GBP) softened against many of its peers yesterday as fresh rail strikes added to the UK’s economic woes.
With UK inflation at a 40-year high of 10.1%, workers in various sectors are demanding pay rises to weather the soaring prices. The resulting industrial action caused travel chaos around the country, while a growing sense of discontent in the UK is adding to uncertainty around the Pound.
This morning’s data revealed that UK retail sales unexpectedly grew by 0.3% in July. Will this be enough to lift the Pound today?
Euro (EUR) Weakens as EU Gas Hits Record Highs
The Euro (EUR) faced some selling pressure yesterday amid growing worries around the Eurozone’s energy crisis.
The ongoing drought in Europe has increased electricity demand and disrupted energy shipments, pushing prices higher, while Russia continues to choke off gas supplies to the continent. Yesterday, EU gas prices rose by over 6% to hit a fresh record high.
Amid a lack of economic data from the Eurozone today, gas prices could continue to drive EUR movement. Could the current pullback in energy commodities help EUR regain ground?
US Dollar (USD) Recovers on Hawkish Fed Comments
The US Dollar (USD) was mixed yesterday as the market mood shifted, causing the safe-haven ‘Greenback’ to waver through the morning.
USD then recovered later on following some hawkish comments from Federal Reserve official Mary Daly. Daly hinted that another 75-bp rate hike next month is a possibility, thereby boosting the American currency.
Looking ahead, Fed policymaker Tom Barkin is due to speak. If he also strikes a hawkish tone, the US Dollar could firm.
Canadian Dollar (CAD) Buoyed by Rise in Oil
The Canadian Dollar (CAD) found some support yesterday as stronger WTI crude prices underpinned the oil-linked ‘Loonie’.
Later today, an expected slowdown in Canadian retail sales could potentially dent the Canadian Dollar.
Australian Dollar (AUD) Trips as Sentiment Sours
The Australian Dollar (AUD) wavered a little lower overnight as a slightly downbeat market mood sapped demand for the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Falters amid Gloomy Market Mood
Likewise, the New Zealand Dollar (NZD) softened in overnight trade due to the fairly risk-off mood among investors.