Euro (EUR) Jumps following ECB Rate Hike
The Euro (EUR) strengthened yesterday after a hawkish hike from the European Central Bank (ECB).
The ECB raised rates by 25bps, as expected, while signalling that further increases were likely in the coming months.
Today, the Eurozone’s finalised consumer price index for May is due out. Could confirmation of a cooldown in inflation temper EUR’s gains?
Pound (GBP) Underpinned by BoE Expectations
The Pound (GBP) held strong yesterday as expectations of more policy tightening from the Bank of England (BoE) kept the currency afloat.
However, a lack of UK data led to some mixed movement. While GBP hit a new one-year high against the US Dollar (USD), it softened against some of its stronger peers.
UK data remains absent today, so Sterling could see uncertain movement once again.
US Dollar (USD) Slides amid Dovish Fed Bets
The US Dollar slumped yesterday as markets scaled back bets for more Federal Reserve interest rate rises.
Although the Fed signalled that more rate hikes were to come, following its policy pause, higher-than-forecast jobless claims figures dented Fed bets on Thursday afternoon.
Today’s focus is on the University of Michigan’s consumer sentiment index. Could an expected improvement help USD regain ground?
Canadian Dollar (CAD) Stumbles due to USD Correlation
The Canadian Dollar (CAD) slipped yesterday as the currency suffered from its positive correlation with the US Dollar. However, an uptick in oil prices may have limited losses for the commodity-linked ‘Loonie’.
With Canadian data thin on the ground today, USD and oil could continue driving CAD. Could another rise in crude help lift CAD exchange rates?
Australian Dollar (AUD) Stays Firm amid Upbeat Mood
The Australian Dollar (AUD) wavered overnight, though an upbeat mood kept the risk-sensitive currency trading at strong levels against many of its peers.
New Zealand Dollar (NZD) Softens on Weaker PMI
The New Zealand Dollar (NZD) stumbled last night after the latest Business NZ PMI showed a deeper-than-forecast contraction in New Zealand manufacturing activity.