Pound (GBP) supported by BoE rate decision
The pound (GBP) gained ground yesterday as markets responded to the Bank of England’s (BoE) interest rate decision.
The BoE held rates steady, as expected, with Governor Andrew Bailey pushing back slightly on market expectations of a rate cut in August.
Turning to today, Sterling could face headwinds after abysmal retail sales figures for May. Sales slumped 2.7% last month, far worse than the expected 0.5% decline.
Euro (EUR) unsure despite risk-off mood
The euro (EUR) was mixed yesterday as a lack of Eurozone data left the currency exposed to wider market trends.
While an anxious mood helped the safer euro rise against riskier rivals, EUR exchange rates struggled elsewhere.
Looking forward, the single currency could remain under pressure today following a decline in German producer prices in May, which could boost European Central Bank (ECB) interest rate cut bets.
US dollar (USD) pares post-Fed gains
Yesterday the US dollar (USD) pared the gains it enjoyed following the Federal Reserve decision on Wednesday evening amid concerns the US could strike Iran.
USD investors have seemingly been anxious about direct US involvement in the Israel-Iran conflict, so speculation of a strike this weekend dampened demand for the American dollar.
The ‘greenback’ ends the week with little in the way of economic data. Therefore, risk sentiment and geopolitical tensions could impact USD.
Canadian dollar (CAD) unsupported by rising oil
The crude-linked Canadian dollar (CAD) failed to gain ground yesterday despite rising oil prices, with the currency sliding against all but its weakest peers.
Today, CAD investors could take their cues from the latest Canadian retail sales figures. With sales growth expected to have remained positive in May, the ‘loonie’ could enjoy support.
Australian dollar (AUD) unclear despite anxious mood
The Australian dollar (AUD) traded without a clear direction overnight. A risk-off mood stifled the ‘Aussie’, while a weaker US dollar lent it support.
New Zealand dollar (NZD) rangebound amid market uncertainty
The New Zealand dollar (NZD) was likewise uncertain overnight, trading in a narrow range against most of its peers.
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