Pound (GBP) Falls as BoE Sounds Dovish
The Pound (GBP) weakened yesterday amid the Bank of England’s (BoE) latest interest rate decision.
Although the bank raised interest rates by 25bps, as expected, statements accompanying the decision seemed to suggest that the British central bank may be near the end of its hiking cycle. This weighed on Sterling.
Turning to today, a lack of UK economic data may leave the Pound to trade without a clear directional bias.
Euro (EUR) Undermined by Falling PPI
The Euro (EUR) moved mostly sideways yesterday, as a sharp fall in producer price inflation dampened European Central Bank (ECB) rate rise expectations.
However, the safer single currency enjoyed some support amid the ongoing risk-off market mood.
Today, Eurozone retail sales are forecast to have grown 0.2% in June. Could the first positive reading since January boost EUR exchange rates?
US Dollar (USD) Wobbles as PMI Disappoints
The US Dollar (USD) also wavered yesterday, as the latest ISM PMI showed a larger-than-forecast slowdown in the US services sector.
Much like the Euro, however, the safe-haven US Dollar was shored up by ongoing anxiety in markets.
Looking ahead, the latest non-farm payrolls report is in the spotlight. Could it beat forecasts, as the ADP release did, and send USD surging higher?
Canadian Dollar (CAD) Muted despite Oil Uptick
The commodity-linked Canadian Dollar (CAD) was subdued on Thursday, despite a modest uptick in oil prices, as a lack of Canadian data left the ‘Loonie’ lacking support.
Coming up, could an uptick in the Canadian unemployment rate see CAD suffer losses this afternoon?
Australian Dollar (AUD) Firms on Hawkish RBA Statement
The Australian Dollar (AUD) ticked higher overnight on Thursday, buoyed by the hawkish tone struck in the Reserve Bank of Australia’s (RBA) latest Statement on Monetary Policy.
New Zealand Dollar (NZD) Buoyed by Improving Market Mood
The New Zealand Dollar (NZD) also firmed in overnight trade, with the risk-sensitive ‘Kiwi’ benefitting from an improving market mood.