Pound (GBP) slides amid downbeat retail data
The pound (GBP) came under pressure yesterday following some downbeat data from the Confederation of British Industry (CBI).
The CBI’s latest distributive trades survey showed an unexpected slump in retail sales in June, fuelling recent fears that the UK’s economic recovery may be stalling.
UK data is in short supply today, which could leave the pound to trade without a clear directional bias.
Euro (EUR) subdued as German consumer confidence dips
The euro (EUR) was muted on Wednesday, weakening against its stronger rivals, following an unexpected decline in German consumer confidence heading into July.
Germany’s latest consumer climate indicator showed that household morale in the Eurozone’s largest economy deteriorated for the first time in five months, thereby putting some pressure on EUR exchange rates.
Turning to today, the Eurozone’s latest economic sentiment index could lend EUR some support this morning. Forecasters expect to see a modest uptick this month.
US dollar (USD) extends upside following hawkish Fed comments
The US dollar (USD) continued to march higher yesterday, with USD enjoying ongoing tailwinds following hawkish Federal Reserve comments earlier in the week.
In addition, a cautious market mood boosted the safe-haven currency’s appeal.
The ‘greenback’ could face selling pressure today if new US jobless claims remained high last week and durable goods orders stalled in May, as expected.
Canadian dollar (CAD) stifled by weakening oil prices
The crude-linked Canadian dollar (CAD) was undermined by softening oil prices yesterday, although CAD’s positive correlation with USD cushioned the currency from losses.
With Canadian economic data in short supply today, oil price movements could drive CAD. Could another decline in crude put the ‘loonie’ on the defensive?
Australian dollar (AUD) buoyed by RBA bets
The Australian dollar (AUD) rose last night after Australian consumer inflation expectations rose more than forecast in June, further fuelling bets on a possible rate hike from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) stumbles on weak economic data
The New Zealand dollar (NZD) initially slipped overnight after weaker-than-forecast business and consumer confidence readings. However, NZD’s positive correlation with AUD helped the ‘kiwi’ claw back some losses.