Pound (GBP) Slips following Sales Data
The Pound (GBP) initially ticked higher yesterday as Bank of England (BoE) interest rate rise bets boosted the UK currency.
However, an unexpected drop in sales volumes, according to the Confederation of British Industry’s (CBI) distributive trades survey, saw Sterling drop as the session progressed.
Turning to the session ahead, notable UK data is in short supply. As a result, the Pound may trade without a clear directional bias.
Euro (EUR) Mixed despite Downbeat German Data
The Euro (EUR) wavered yesterday, dropping at the start of the session due to a larger-than-forecast fall in German business sentiment.
As trade continued, the single currency regained ground only to cede it again as EUR investors seemed cautious ahead of a speech by European Central Bank (ECB) President Christine Lagarde.
Lagarde is due to speak again this morning, along with some of her colleagues at the ECB. If the policymakers signal more rate rises to come, the Euro may strengthen.
US Dollar (USD) Subdued amid Absence of Data
The safe-haven US Dollar (USD) was subdued yesterday, trading in a tight range and struggling to make gains despite a bearish mood in markets.
A lack of data and some uncertain movement in US Treasury yields served to mute the ‘Greenback’.
Later this afternoon, US durable goods orders could dent USD. Economists expect to see a 1% decline in May.
Canadian Dollar (CAD) Firms as Oil Prices Climb
The commodity-tied Canadian Dollar (CAD) wavered higher yesterday as a modest uptick in oil prices supported the currency.
Canada’s May inflation rate is in the spotlight for CAD investors today. A sharp decline in inflation could dampen expectations for more Bank of Canada (BoC) interest rate rises.
Australian Dollar (AUD) Surges on Chinese Economy Hopes
The Australian Dollar (AUD) jumped overnight as renewed hopes for China’s economic recovery lifted the ‘Aussie’, which trades as a proxy currency for the Chinese economy.
New Zealand Dollar (NZD) Buoyed amid Upbeat Trade
The New Zealand Dollar (NZD) also rallied during last night’s trade, with a cheery mood in Asian markets boosting demand for the risk-sensitive ‘Kiwi’.