Pound (GBP) Fluctuates following BoE Decision
A 50bps interest rate rise from the Bank of England (BoE) rocked the Pound (GBP) yesterday, as investors fear more monetary tightening will drive the UK economy into recession.
Sterling fluctuated in the wake of the decision, finding gains against its weaker peers but stumbling elsewhere.
This morning, UK retail sales surprised to the upside to show growth last month, which could support Sterling. Next up are the UK’s latest PMIs. Will slowing services and manufacturing activity weigh on the Pound?
Euro (EUR) Slips amid USD Strength and Ukraine Fears
The Euro (EUR) fell against many of its rivals yesterday as a stronger US Dollar (USD) and Russia-Ukraine worries dented the single currency.
EUR was able to tick higher against its riskier peers, however, thanks to a downbeat market mood.
The Eurozone PMIs for June are due to be published this morning. Weak readings could once again put pressure on the Euro.
US Dollar (USD) Buoyed amid Anxious Trade
The US Dollar climbed during yesterday’s session as anxious investors flocked to the safe-haven currency.
With central banks around the world continuing to raise interest rates, markets grew fearful of the impact of higher borrowing costs on the global economy.
Today, the latest US PMIs are also out. Gloomy results could dent USD. However, if the risk-off mood persists then the ‘Greenback’ may garner support.
Canadian Dollar (CAD) Climbs on BoC Bets
The Canadian Dollar (CAD) gained ground yesterday, despite declining oil prices, as markets priced in further rate rises from the Bank of Canada (BoC) following Wednesday’s strong retail sales print.
Amid a lack of Canadian data today, crude price dynamics could drive the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Stumbles amid Risk-Off Trade
Although Australia’s latest PMIs beat forecasts, they still showed weakening private sector activity. This, paired with a gloomy market mood, dented the risk-sensitive Australian Dollar (AUD).
New Zealand Dollar (NZD) Drops as Sentiment Sours
The New Zealand Dollar (NZD) likewise declined last night as the bearish tone in markets weighed on the riskier ‘Kiwi’.