Red-Hot Wage Data Boosts Pound

Pound (GBP) Boosted by Red-Hot Wage Growth

Record-high average earnings data boosted the Pound (GBP) yesterday, as wages grew more than expected.

The release prompted investors to bet on further rate hikes from the Bank of England (BoE). However, Sterling saw its gains capped by a shock rise in unemployment, which could indicate a slowing labour market.

While headline inflation cooled as expected this morning, core and services inflation surprised to the upside. The Pound is off to a buoyant start; will renewed rate hike bets keep GBP afloat?

Euro (EUR) Buoyed by Surprise German Economic Sentiment Increase

A surprise, yet modest, improvement in the German ZEW economic sentiment index bolstered the Euro (EUR) yesterday.

However, these gains were likely capped by continued recession anxieties. While sentiment was less pessimistic, it still remained undoubtedly negative.

The Eurozone’s latest estimate for second-quarter GDP growth is due out this morning. Any deviation from the preliminary reading could trigger EUR movement.

US Dollar (USD) Unable to Capitalise on Strong Retail Sales Data

Despite better-than-expected retail sales data, the US Dollar (USD) was unable to capitalise and traded listlessly yesterday.

The market mood was broadly one of cautious optimism, preventing the safe-haven ‘Greenback’ from attaining much support.

With the latest FOMC meeting minutes due this evening, the ‘Greenback’ may see limited trade as investors anticipate the release.

Canadian Dollar (CAD) Uninspired by Higher-than-Forecast Inflation Print

Hotter-than-forecast inflation data failed to inspire the Canadian Dollar (CAD) yesterday, as the ‘Loonie’ remained flat against its peers.

Oil prices are likely to be the main driver of movement for CAD today, amid a light data calendar for the commodity-linked currency.

Australian Dollar (AUD) Fluctuates on Changeable Market Mood

The risk-sensitive Australian Dollar (AUD) wavered overnight, amid shifting levels of risk appetite.

New Zealand Dollar (NZD) Fluctuates Higher following RBNZ Decision

The New Zealand Dollar (NZD) was volatile overnight, eventually trading higher, after the Reserve Bank of New Zealand (RBNZ) left rates unchanged but opened the door to the possibility of another rate rise.

John Mulcahey

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