Pound (GBP) stable ahead of impactful UK data
The pound (GBP) traded sideways through yesterday’s session in the absence of any market-moving GBP data.
GBP investors also appeared to be erring on the side of caution ahead of some high-impact UK economic releases being published through the second half of the week.
This data kicked off with the publication of the UK’s latest consumer price index at the start of today’s session, where a robust inflation print in August is helping to underpin Sterling this morning.
Euro (EUR) undermined by deteriorating German economic sentiment
The euro (EUR) struggled to attract support on Tuesday, following the publication of Germany’s latest ZEW economic sentiment survey.
September’s index reported a much larger-than-expected drop in morale, while also marking the third consecutive deterioration in economic sentiment and the index’s worst reading in almost a year.
Coming up, the euro may struggle to attract support today as the Eurozone’s own CPI figures are expected to confirm inflation in the bloc slowed to a three-year low in August.
US dollar (USD) flat ahead of Fed rate decision
The US dollar (USD) traded in a narrow range yesterday, as USD investors remained wary ahead of the Federal Reserve’s impending interest rate decision.
In the meantime, the ‘greenback’ was able to stave off further losses thanks to Tuesday’s stronger-than-expected US retail sales figures.
Turning to today’s session, unsurprisingly, all eyes will be on the Fed when it delivers its rate decision later this evening. Expect to see the US dollar tumble if the bank ultimately opts for the larger 50bps cut.
Canadian dollar (CAD) subdued as domestic inflation slows
The Canadian dollar (CAD) was muted on Tuesday as Canada’s latest inflation figures surprised to the downside and stoked Bank of Canada (BoC) rate cut bets.
With CAD data in short supply today, any movement in the ‘loonie’ is likely to be tied to oil price dynamics. Will a continued recovery help to underpin the Canadian dollar?
Australian dollar (AUD) firms in risk-positive trade
The Australian dollar (AUD) ticked higher overnight on Tuesday as rising expectations for a 50bps rate cut from the US central bank bolstered market risk appetite.
New Zealand dollar (NZD) rises ahead of Fed rate decision
The New Zealand dollar (NZD) also strengthened in overnight trade thanks to the positive shift in risk appetite.