Pound (GBP) mixed in absence of data
A lack of UK data left the increasingly risk-sensitive pound (GBP) to be driven by the market mood yesterday, with GBP rising against safer peers while falling against riskier rivals.
Meanwhile, recent bets that the Bank of England (BoE) will pursue two more rate cuts by the end of the year kept a firm lid on GBP exchange rates.
UK economic data remains in short supply today, potentially leading to more mixed movement in Sterling.
Euro (EUR) struggles despite positive German data
A larger-than-forecast recovery in German industrial production in June failed to lift the euro (EUR) yesterday.
Despite the upbeat data, a recovering appetite for risk put the safer single currency on the back foot.
With no Eurozone data due to be released today, the euro’s movement may be muted.
US dollar (USD) stumbles as markets stabilise
The US dollar (USD) fell yesterday as markets stabilised following the global selloff earlier in the week. The improving market mood weighed on the safe-haven ‘greenback’.
However, receding bets on an emergency interest rate cut from the Federal Reserve helped to limit USD’s downside.
Looking forward, the focus for USD investors will be the latest US initial jobless claims figure. If new unemployment claims remained at a near one-year high last week, renewed fears over the health of the US economy could hurt the US dollar.
Canadian dollar (CAD) boosted by recovering oil prices
Rising oil prices lifted the crude-linked Canadian dollar (CAD) yesterday.
Oil price dynamics may drive CAD movement again today amid a lack of Canadian economic data. With crude currently retreating, the ‘loonie’ may lose ground.
Australian dollar (AUD) climbs on RBA rate hike comments
The Australian dollar (AUD) strengthened last night thanks to some hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock. Bullock said the RBA ‘will not hesitate’ to hike interest rates again if necessary.
New Zealand dollar (NZD) muted following inflation expectations
The New Zealand dollar (NZD) was flat overnight after New Zealand business inflation expectations came in above forecast for the third quarter at 2% but still showed a decline from 2.3% in Q2.