Pound (GBP) unclear following mixed data
The pound (GBP) moved without a clear direction yesterday following mixed mid-tier data from the Confederation of British Industry (CBI).
Although the CBI reported a dramatic improvement in business confidence in the second quarter of 2024, it also revealed a large slump in industrial orders this month.
More data from the CBI is due out today. An expected decline in UK retail trade could put pressure on the pound.
Euro (EUR) subdued despite positive German data
The euro (EUR) was muted yesterday, despite a larger-than-forecast increase in Germany’s business climate index for April.
Although companies in the Eurozone’s largest economy are the most optimistic they’ve been since May 2023, the prospect of upcoming interest rate cuts from the European Central Bank (ECB) put pressure on EUR.
This morning, a better-than-expected improvement in German consumer confidence could lend EUR support. However, ECB rate cut bets could continue to stifle the euro’s upside potential.
US dollar (USD) crawls higher as US Treasury yields climb
The US dollar (USD) managed to recover some of Tuesday’s losses yesterday as an uptick in US Treasury yields supported the ‘greenback’.
Stronger US durable goods order growth also underpinned USD exchange rates. However, the US dollar’s upside seemed limited.
Turning to today, the latest American GDP figures are the focus. Will continued economic growth in the US boost the ‘greenback’?
Canadian dollar (CAD) slips as retail sales contract
The Canadian dollar (CAD) fell yesterday following an unexpected decline in Canadian retail sales in February.
Looking forward, Canadian economic data is in short supply today. As a result, CAD could trade true to its positive correlations with both oil prices and the US dollar.
Australian dollar (AUD) steady amid quiet trade
The Australian dollar (AUD) held strong overnight, managing to edge higher against its weakest peers, as a lack of data and a lukewarm market mood kept AUD afloat but failed to provide any meaningful upside.
New Zealand dollar (NZD) stable as risk appetite holds
The New Zealand dollar (NZD) also saw limited movement last night, with the risk-sensitive ‘kiwi’ posting modest gains against its safer peers thanks to a slight increase in risk appetite.