Pound (GBP) mixed in absence of data
The pound (GBP) initially dipped yesterday before clawing back its losses and trading broadly sideways overall.
This unclear movement came amid a lack of British economic data, which exposed GBP to market volatility.
UK data remains thin on the ground today, which could see Sterling trade without a clear direction. Additionally, GBP investors may refrain from placing any aggressive bets ahead of tomorrow’s consumer price index.
Euro (EUR) firms following ECB comments
The euro (EUR) managed to start this week’s session on strong footing, thanks to comments from European Central Bank (ECB) Chief Economist Philip Lane.
Lane reiterated that the ECB may wait before delivering further interest rate cuts, which supported EUR. However, ongoing political uncertainty in France kept a firm lid on EUR.
Turning to today, the common currency could catch bids once again. Germany’s latest ZEW economic sentiment index is forecast to rise for the 11th consecutive month, pointing to growing optimism in the Eurozone’s largest economy.
US dollar (USD) underpinned by risk-off trade
The US dollar (USD) initially enjoyed support on Monday as a risk-off mood boosted the safe-haven currency.
However, growing bets on a Federal Reserve rate cut in September put some pressure on USD in the latter part of the session.
Looking ahead, an expected recovery in US retail sales in May could lift the ‘greenback’ later this afternoon.
Canadian dollar (CAD) struggles despite rising oil prices
Despite rising oil prices, the crude-linked Canadian dollar (CAD) failed to find sustainable gains yesterday.
Today, CAD could trade true to its correlation with USD. Could an uptick in the US dollar also lift the ‘loonie’?
Australian dollar (AUD) rises as RBA leaves door open to rate hike
The Australian dollar (AUD) rose overnight amid the Reserve Bank of Australia’s (RBA) latest interest rate decision. Although the bank left its policy untouched, it kept the door open to another rate hike in the future.
New Zealand dollar (NZD) slips despite upbeat mood
The New Zealand dollar (NZD) weakened overnight, although there was no clear catalyst for the movement. An upbeat market mood failed to support NZD.