Pound (GBP) uncertain amid mixed employment report
The pound (GBP) was mixed yesterday in the wake of the UK’s latest labour market report.
While a shock rise in unemployment in April pressured the pound, GBP was cushioned by stronger-than-forecast wage growth in the same month.
This morning, the pound could come under pressure following the publication of the UK’s latest GDP data. The British economy stalled in April, suggesting that the country’s recovery could face some bumps in the road.
Euro (EUR) extends losses amid political jitters
Political anxiety continued to hammer the euro (EUR) on Tuesday after the European elections over the weekend saw significant gains for far-right Eurosceptic parties.
Worries about the snap election in France added to EUR’s losses, particularly as ratings agency Moody’s warned that it could impact the country’s credit score.
With Eurozone data thin on the ground today, the single currency could remain on the defensive.
US dollar (USD) firms as Fed decision looms
The US dollar (USD) inched higher to briefly hit a fresh one-month high yesterday, as markets continued to adjust their expectations ahead of the Federal Reserve’s interest rate decision this evening.
Following recent strong US data, analysts expect the Fed to push back plans to cut interest rates even further.
Today’s US consumer price index could propel USD to new highs, if it shows signs of sticky price pressures. The Fed decision this evening then takes centre stage, where hawkish forward guidance could turbocharge the ‘greenback’.
Canadian dollar (CAD) wobbles amid wavering oil prices
The crude-linked Canadian dollar (CAD) traded in a wide range on Tuesday as choppy oil prices infused the currency with volatility.
This evening, a speech from Bank of Canada (BoC) Governor Tiff Macklem could impact CAD. If Macklem strikes a dovish tone, the ‘loonie’ could weaken.
Australian dollar (AUD) wavers amid weaker Chinese inflation
The Australian dollar (AUD) wobbled overnight as a softer inflation reading from China was offset by an improvement in market risk appetite.
New Zealand dollar (NZD) rangebound amid uncertain trading conditions
The New Zealand dollar (NZD) also wavered in a narrow range last night, as a lack of New Zealand data and market uncertainty kept NZD subdued.