Euro (EUR) Slides amid German Economic Woes
The Euro (EUR) faced selling pressure during yesterday’s session, amid lingering concerns about the dire state of the Eurozone’s largest economy, Germany.
The safer single currency also suffered from an increasing appetite for risk as well as its negative correlation with a recovering US Dollar (USD) in the afternoon.
The Eurozone PMIs printed with troubling results this morning, leading EUR to weaken.
Pound (GBP) Stumbles in Absence of Data
A lack of UK economic data left the Pound (GBP) vulnerable to losses yesterday, with Sterling slipping against many of its peers.
Amid the absence of data, concerns about the negative consequences of soaring borrowing costs seemed to dampen GBP’s appeal.
This morning, the UK’s latest PMI results printed far worse than forecast. Sterling is facing heavy selling pressure as a result.
US Dollar (USD) Rebounds despite Risk-On Trade
A risk-positive mood in markets initially dampened demand for the US Dollar yesterday.
However, the ‘Greenback’ managed to bounce back through the second part of the session. Fairly hawkish Federal Reserve comments and strong US Treasury yields underpinned the American currency.
Looking ahead, the US PMIs today are expected to be better than the Eurozone and UK releases. Although not as impactful as the ISM surveys, today’s data could positively impact the ‘Greenback’.
Canadian Dollar (CAD) Mixed amid Volatile Oil Prices
The Canadian Dollar (CAD) was mixed yesterday, rallying against its weaker peers but struggling elsewhere. The unclear movement came courtesy of CAD’s positive correlations with volatile oil prices and a fluctuating US Dollar.
Coming up, Canada’s retail sales figures could dent the ‘Loonie’ today. Forecasters expect the latest release to show that sales growth stalled in June.
Australian Dollar (AUD) Fluctuates amid Weaker PMIs
The risk-sensitive Australian Dollar (AUD) experienced volatility overnight as an improving market mood and downbeat Australian PMIs pulled the currency in different directions.
New Zealand Dollar (NZD) Struggles as Retail Sales Shrink
Likewise, the New Zealand Dollar (NZD) saw choppy trade. Although the latest retail sales results beat forecasts, they still revealed a third consecutive month of decline.