Pound (GBP) steady amid mixed credit data
The pound (GBP) struggled for direction on Tuesday following the publication of the Bank of England’s (BoE) latest consumer credit statistics.
Although borrowing rose more than expected – hinting at some resilience in consumer activity – some experts cautioned that the increase could stem from rising unemployment, with households borrowing to make ends meet.
While UK data is lacking today, key releases from the US and Eurozone could ripple through markets and sway GBP exchange rates.
Euro (EUR) pressured as doubts over EU-US deal intensify
The euro (EUR) remained under pressure on Tuesday, with criticism of the EU-US trade pact continuing to gain traction.
A growing number of EU officials voiced opposition to the deal, arguing it disproportionately benefits the US and leaves steep tariffs in place for the majority of EU exports.
The euro may face fresh headwinds today if the Eurozone’s GDP data confirms stagnation in Q2, reinforcing concerns about the bloc’s economic momentum.
US dollar (USD) climbs ahead of key Fed decision
The US dollar (USD) extended its rally on Tuesday, marking a fifth consecutive day of gains.
The continued upswing was fuelled by optimism over both the EU-US trade breakthrough and the renewed dialogue between the US and China in Sweden.
If upcoming US GDP figures beat forecasts and the Federal Reserve strikes a hawkish tone following its latest interest rate decision, the ‘greenback’ will likely extend its recent winning streak.
Canadian dollar (CAD) climbs on oil price rally
The Canadian dollar (CAD) gained ground on Tuesday, buoyed by a further surge in oil prices as crude hit a two-week high as speculation that the US could impose secondary sanctions on Russia helped propel prices upwards.
Today’s interest rate announcement from the Bank of Canada (BoC) could drive additional gains for the ‘loonie’ if policymakers opt to hold rates and deliver an upbeat policy message.
Australian dollar (AUD) holds ground despite weak CPI
The Australian dollar (AUD) held firm in overnight trade, despite the release of disappointing domestic inflation data. While the lower-than-expected CPI reading increased expectations for a rate cut by the Reserve Bank of Australia (RBA) next month, traders were hesitant to act ahead of major US risk events.
New Zealand dollar (NZD) flat as traders eye US data
The New Zealand dollar (NZD) also remained directionless overnight, as modest rise in domestic business sentiment was largely overshadowed by cautious trading ahead of high-impact US economic data due later today.
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