Pound (GBP) Directionless amid Lack of Data
The Pound (GBP) failed to find a clear trajectory yesterday as a lack of UK data and a mixed market mood saw Sterling waver.
GBP exchange rates remained underpinned by Bank of England (BoE) rate hike expectations, however, protecting the Pound from notable losses.
Today, British economic data remains thin on the ground. As a result, we could see more mixed GBP movement.
Euro (EUR) Steadies after Overnight Gains
The Euro (EUR) also trended mostly sideways during yesterday’s European session, amid thin trading conditions.
However, the common currency had made gains through overnight trade and it managed to hold on to these. EUR enjoyed support amid a cautious mood and persistent weakness in the US Dollar (USD).
Once again, a scarcity of data releases today could leave the Euro to trade on risk appetite and the currency’s negative relationship with USD.
US Dollar (USD) Remains on the Defensive
An overcast market mood failed to provide the safe-haven US Dollar with any meaningful gains yesterday.
While a waning appetite for risk helped USD edge higher against some of its weaker peers, the recent pullback in Federal Reserve rate hike bets continued to be a dampener on the US Dollar.
Looking ahead, the ‘Greenback’ could potentially catch some bids today. US retail sales growth is forecast to have accelerated last month.
Canadian Dollar (CAD) Firms despite Lack of Catalyst
The Canadian Dollar (CAD) strengthened yesterday, rising against many of its peers with no clear catalyst for the movement.
Turning to today’s session, Canada’s latest consumer price index is in focus. Will signs of cooling inflation see CAD stumble?
Australian Dollar (AUD) Muted amid Mixed RBA Minutes
The Australian Dollar (AUD) was subdued during overnight trade. The Reserve Bank of Australia (RBA) meeting minutes showed that policymakers considered leaving rates unchanged at the bank’s recent policy decision.
New Zealand Dollar (NZD) Struggles for Support
The New Zealand Dollar (NZD) was fairly quiet last night, before suffering some losses as the European session approached, as a lack of New Zealand economic data left NZD without much support.