Pound (GBP) firms as risk appetite increases
The pound (GBP) rose against many of its peers yesterday, despite a lack of UK economic data.
An improving market mood underpinned the increasingly risk-sensitive pound.
This morning the UK’s final services PMI could put pressure on Sterling, particularly if it is revised lower, as the manufacturing PMI was earlier in the week.
Euro (EUR) stumbles amid cooling inflation
The euro (EUR) faced pressure yesterday following the Eurozone’s preliminary consumer price index for June.
Headline inflation cooled from 2.6% in May to 2.5% last month, stoking bets on further interest rate cuts from the European Central Bank (ECB) this year.
The Eurozone’s producer price index this morning could see EUR extend its losses, as prices are set to have declined in May. Further signs of disinflation in the bloc may further boost ECB rate cut bets.
US dollar (USD) dented by dovish Fed comments
Comments from Federal Reserve Chair Jerome Powell undermined the US dollar (USD) yesterday, as the Fed chief said that the latest data suggests the US is on a ‘disinflationary path’.
However, an unanticipated rise in US job openings cushioned the ‘greenback’, as it alleviated some concern over the strength of the US labour market.
USD could experience volatility this afternoon amid a flurry of US data releases. The Fed meeting minutes in the evening could also impact the ‘greenback’. Could a hawkish tilt from the Fed boost the US dollar?
Canadian dollar (CAD) rebounds despite downbeat data
The crude-linked Canadian dollar (CAD) managed to recover from multi-week lows yesterday, despite some weaker-than-forecast manufacturing data and wavering oil prices.
With Canadian data absent form the calendar today, CAD could trade true to its correlation with crude. Could an uptick in oil lift the ‘loonie’?
Australian dollar (AUD) climbs as data beats forecasts
The Australian dollar (AUD) strengthened overnight following strong Australian data. Both the final services PMI for June and May’s retail sales figure exceeded expectations, thereby boosting AUD.
New Zealand dollar (NZD) muted amid quiet trading conditions
The New Zealand dollar (NZD) was subdued overnight as a lack of data and a mixed market mood left the currency rudderless.