Pound (GBP) unclear amid lack of data
The pound (GBP) found itself rudderless yesterday as GBP investors held back ahead of some high-impact UK events later in the week.
As a result, Sterling traded in a wide range, falling against its stronger peers but rising against weaker ones.
Turning to today, the pound may be muted again amid an ongoing lack of data, with GBP investors potentially waiting for tomorrow’s publication of the UK consumer price index for May.
Euro (EUR) boosted by falling USD
The euro (EUR) enjoyed support yesterday thanks to the common currency’s strong negative correlation with a declining US dollar (USD).
However, the safe-haven euro lost ground against riskier currencies amid an uptick in market risk appetite.
Germany’s ZEW economic sentiment index is due out this morning. With sentiment in the Eurozone’s largest economy expected to have improved this month, the euro could climb.
US dollar (USD) slides as risk-on mood returns
The safe-haven US dollar faced headwinds yesterday amid a sharp turnaround in market risk appetite, as investors were relieved that the Strait of Hormuz – a crucial waterway for oil shipments – remained open despite the Israel-Iran conflict.
Weak US data added to USD’s headwinds in the afternoon, as the New York state manufacturing index plunged to its lowest level since March, reporting the fourth consecutive decline in business conditions.
Today, the latest US retail sales figures are due out. An expected 0.7% drop in sales growth could put the American dollar on the back foot once again.
Canadian dollar (CAD) unclear as oil prices retreat
The crude-linked Canadian dollar (CAD) was mixed yesterday. While oil prices fell back from recent highs, they remained up following Friday’s spike, holding above $70 per barrel.
Market-moving Canadian data is absent from the calendar today, likely leaving CAD to be driven by oil price dynamics. If crude prices start ticking higher again, the ‘loonie’ could also rise.
Australian dollar (AUD) see-saws as risk appetite shifts
The risk-sensitive Australian dollar (AUD) wavered overnight, initially slipped before recouping losses amid reports that Donald Trump left the G7 meeting early to work on an Israel-Iran ceasefire, although Trump later denied this.
New Zealand dollar (NZD) wavers amid uncertain market mood
The New Zealand dollar (NZD) also faced choppy movement overnight amid the shifting market mood.
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