Pound (GBP) extends downside amid BoE rate cut bets
The pound (GBP) faced selling pressure yesterday as markets continued to price in the possibility of two more interest rate cuts this year from the Bank of England (BoE).
In addition, the ongoing riots across the UK deterred interest in Sterling by undermining the country’s image of a return to political stability.
Turning to today, a lack of UK data could keep the pound on the defensive as investors brace for more civil unrest.
Euro (EUR) uncertain amid mixed data
The euro (EUR) was unclear during yesterday’s session due to mixed economic data.
While Germany’s factory orders smashed forecasts to show a strong recovery in June, a sharper-than-expected contraction in Eurozone retail sales offset the upside.
This morning, German industrial production also beat forecasts for June. Could further signs of recovering manufacturing activity in the Eurozone’s largest economy see EUR strengthen?
US dollar (USD) choppy as market turbulence continues
The US dollar (USD) remained volatile yesterday as the recent turbulence rocking global markets continued.
Although USD was able to recoup some of its recent losses, a slight improvement in market mood and bets on incoming Federal Reserve rate cuts put some pressure on the ‘greenback’.
US economic data is absent from the calendar today, therefore risk dynamics could impact USD. Could a return to cheery trade undermine the safe-haven US dollar?
Canadian dollar (CAD) buoyed by upbeat data
The Canadian dollar (CAD) gained some ground yesterday as stronger Canadian trade data and a better-than-forecast services PMI lent the ‘loonie’ support.
This evening, the Bank of Canada’s (BoC) meeting minutes are due out. Could dovish signals from the bank see CAD weaken?
Australian dollar (AUD) climbs amid improving mood
The Australian dollar (AUD) rose overnight following a better-than-forecast Ai Group industry index and a risk-on market mood.
New Zealand dollar (NZD) firms amid risk-on trade
The New Zealand dollar (NZD) was also buoyed by risk-positive trade last night. Slightly better-than-expected New Zealand employment data also aided NZD.