Pound (GBP) quiet amid UK general election
The pound (GBP) was muted yesterday as polling stations opened across the UK for the country’s general election.
GBP investors were reluctant to alter their positions in the pound as voters headed to the ballot box, which left Sterling subdued.
The Labour Party won the election with a significant majority. As this was broadly priced in by markets, the pound is holding steady so far this morning.
Euro (EUR) shrugs off falling Germany factory orders
Yesterday, the euro (EUR) was unfazed by an unexpected slump in German factory orders in May.
The European Central Bank’s (ECB) latest meeting minutes may have supported EUR, as they revealed that not all policymakers were in favour of an interest rate cut last month. However, concerns about economic growth capped the euro’s upside.
Later this morning, the Eurozone’s retail sales figure for May is due out. Will an expected modest recovery be enough to lift the common currency?
US dollar (USD) subdued as US markets closed
The US dollar (USD) softened slightly yesterday as the US market closure for Independence Day led to quiet trading conditions.
This left USD to trend lower, following Wednesday’s weaker economic data, although movement was limited.
Looking forward, the US non-farm payrolls report for June is in the spotlight for USD investors. With job creation expected to have slowed last month, the ‘greenback’ could come under fresh pressure.
Canadian dollar (CAD) uncertain as oil prices wobble
The crude-linked Canadian dollar (CAD) was uncertain yesterday amid wavering oil prices, although the currency managed to brush off an unexpected contraction in the Canadian services PMI for June.
A forecast rise in Canadian unemployment last month could see CAD exchange rates slide this afternoon.
Australian dollar (AUD) unclear amid absence of data
The Australian dollar (AUD) wavered overnight as a lack of Australian data and an uncertain market mood kept the ‘Aussie’ confined to a narrow range.
New Zealand dollar (NZD) rangebound in quiet trade
The New Zealand dollar (NZD) also traded broadly sideways last night as quiet conditions muted the ‘kiwi’.