Pound (GBP) rangebound amid lack of data
The pound (GBP) was muted yesterday as a lack of UK economic data kept the currency confined to a narrow range.
Meanwhile, Sterling was unable to extend its recent impressive rally after Bank of England (BoE) policymaker Swati Dhingra said that ‘now is the time’ to start cutting interest rates.
Looking ahead, British data releases are once again absent from the calendar today. Therefore, the pound may remain muted.
Euro (EUR) subdued amid mixed production data
The euro (EUR) was subdued on Monday as some lacklustre Eurozone data left the currency struggling to attract support.
Industrial production in the bloc shrank 0.6% in May. However, this was better than the expected contraction of 1% and the data showed growth in the production of energy and non-durable consumer goods, which prevented steep losses.
This morning, Germany’s latest ZEW economic sentiment index is in focus for EUR investors. Could a deterioration dent the single currency?
US dollar (USD) pressured by Fed rate cut bets
The US dollar (USD) was choppy at the start of this week’s session as the attempted assassination of US Presidential hopeful Donald Trump infused the ‘greenback’ with volatility.
USD then weakened as markets continued to price in an interest rate cut from the Federal Reserve in September. However, a speech from Fed Chair Jerome Powell in the evening helped the currency recoup some losses.
Later today, US retail sales could drive USD movement. Could stalling American sales growth see the ‘greenback’ stumble?
Canadian dollar (CAD) dented by weak economic outlook
The Canadian dollar (CAD) fell yesterday as the Bank of Canada’s (BoC) latest Business Outlook Survey pointed to weak demand and fading wage and inflation expectations.
The ‘loonie’ could face further losses this afternoon, if Canada’s latest consumer price index reports a cooling of inflation last month.
Australian dollar (AUD) slips amid risk aversion
The Australian dollar (AUD) weakened overnight as a gloomy market mood pressured the risk-sensitive currency.
New Zealand dollar (NZD) stumbles in cautious trade
Likewise, the New Zealand dollar (NZD) fell during the overnight session due to the risk-averse market mood.