Pound (GBP) stable following positive CBI data
The pound (GBP) held steady yesterday after the Confederation of British Industry’s (CBI) latest industrial trends survey exceeded forecasts.
Ben Jones, the CBI’s Lead Economist, said UK manufacturers are ‘confident the economy is heading in the right direction’. This mid-tier data lent Sterling limited support.
Turning to today, British economic data is in short supply. This could leave Sterling to trade without a clear trajectory.
Euro (EUR) wavers amid mixed factors
The euro (EUR) was initially buoyed by its strong negative correlation with the US dollar (USD) yesterday, despite some disappointing German data.
However, the single currency was unable to sustain its upside, with EUR falling in the afternoon to trade broadly sideways overall.
Eurozone economic data is absent from the calendar today, keeping EUR investors focused on French politics. Could jitters ahead of this week’s first round in the legislative election see the euro soften?
US dollar (USD) trims last week’s gains amid profit-taking
The US dollar fell yesterday as the ‘greenback’ seemed to run afoul of some profit-taking following its rally at the end of last week.
In addition, a slight improvement in the market mood over the course of the session put some pressure on the safe-haven American currency.
Looking forward, two Federal Reserve officials are due to speak today, with any hawkish remarks potentially supporting the ‘greenback’. Meanwhile, an expected deterioration in US consumer confidence may put some pressure on USD.
Canadian dollar (CAD) mixed on USD and oil correlations
The Canadian dollar (CAD) was unclear yesterday, as the currency’s correlations with both a falling US dollar and rising oil prices pulled the ‘loonie’ in different directions.
This afternoon, Canada’s latest consumer price index is due out. Could a cooldown in inflation last month fuel Bank of Canada (BoC) interest rate cut bets and therefore undermine the ‘loonie’?
Australian dollar (AUD) rises as consumer confidence improves
The Australian dollar (AUD) firmed overnight following an unexpected improvement in Australia’s latest consumer confidence index.
New Zealand dollar (NZD) wobbles amid uncertain risk appetite
The New Zealand dollar (NZD) wavered during last night’s session, as a lack of domestic data left the risk-sensitive ‘kiwi’ to be driven by a mixed market mood.