Pound (GBP) slides as BoE close to cutting interest rates
The pound (GBP) fell yesterday in the wake of the Bank of England’s (BoE) latest interest rate decision.
While the bank left rates unchanged, as expected, the decision was ‘finely balanced’. This dovish twist dented the pound, with markets ramping up bets on a coming rate cut in August.
This morning, an impressive 2.9% rebound in UK retail sales in May could lend Sterling support. Later, the UK’s preliminary PMI results for June could drive further movement. Will positive results boost GBP?
Euro (EUR) pressured by signs of easing inflation
The euro (EUR) weakened yesterday in the wake of weaker-than-forecast German producer price inflation.
PPI in the Eurozone’s largest economy shrank by 2.2% in May, on an annual basis. This stoked expectations that inflationary pressures in Germany and the wider Eurozone could continue to cool in the coming months.
Turning to today, the Eurozone’s latest PMI results are the focus for EUR investors. Could a modest improvement in business activity be enough to lift the single currency?
US dollar (USD) buoyed despite high jobless claims
The US dollar (USD) found success against some of its weaker rivals yesterday, despite data showing that new jobless claims in the US remained elevated last week.
An uptick in US Treasury yields may have lent USD support. However, the currency’s upside was limited in scope.
Looking ahead, the latest S&P PMIs could impact the ‘greenback’. Although not as influential as the ISM surveys, today’s reports could dent USD if they point to slowing business activity in the US this month.
Canadian dollar (CAD) strengthens as oil prices rise
The crude-linked Canadian dollar (CAD) marched higher yesterday as oil prices rose to a seven-week high, thereby boosting demand for CAD.
Today, an expected recovery in Canadian retail sales in April could provide the ‘loonie’ with further support.
Australian dollar (AUD) rangebound despite weaker PMIs
Weaker-than-forecast PMI results failed to dent the Australian dollar (AUD) last night, with the ‘Aussie’ holding steady against its peers.
New Zealand dollar (NZD) flat during quiet trading session
The New Zealand dollar (NZD) also traded sideways overnight as a mixed market mood and lack of New Zealand data restricted NZD’s movements.