Pound (GBP) uncertain amid lack of UK data
The pound (GBP) moved without a clear direction yesterday as a lack of UK economic data kept the currency subdued.
In addition, markets responded to the Labour Party’s manifesto with a shrug. The party didn’t unveil any policies that weren’t previously trailed.
Turning to today, UK economic data is thin on the ground. As a result, the pound could end the week trading without a clear trajectory.
Euro (EUR) softens as industrial product declines
The euro (EUR) found itself under pressure yesterday following weaker-than-expected Eurozone industrial production data.
Output in the bloc unexpectedly contracted by 0.1%, rather than rising by 0.2%. This downbeat data undermined EUR’s appeal.
Looking ahead, a number of European Central Bank (ECB) policymakers are due to speak, including President Christine Lagarde. If they strike a hawkish tone, the euro could regain ground.
US dollar (USD) rises amid risk-off mood
The US dollar (USD) firmed during Thursday’s session as a risk-off market mood boosted the safe-haven currency’s appeal.
USD investors were even unfazed by an unexpected decline in US producer price inflation and a surprise rise in jobless claims.
This afternoon, the US consumer sentiment index is expected to show an improvement in morale in June. If so, this could boost the ‘greenback’.
Canadian dollar (CAD) buoyed by USD strength
The Canadian dollar (CAD) enjoyed support yesterday, with the ‘loonie’ rising thanks to its positive correlation with the US dollar.
Today, oil prices could impact the commodity-linked Canadian dollar. Could a rise in crude boost CAD?
Australian dollar (AUD) wobbles amid cautious mood
The Australian dollar (AUD) wavered slightly lower last night as a cautious mood muted the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) falls following weaker PMI
The New Zealand dollar (NZD) fell overnight as New Zealand’s latest manufacturing PMI showed a deeper-than-expected contraction in activity.