Pound (GBP) steady ahead of key releases
The pound (GBP) held its ground on Tuesday as traders awaited the release of the UK’s latest employment and GDP figures.
These data points could prove particularly influential, either reinforcing or undermining the stance of the Bank of England’s (BoE) more hawkish policymakers, who narrowly lost the vote to cut rates last week.
This morning’s jobs report was first on the agenda, with Sterling beginning to edge higher after June’s data showed payroll losses were far smaller than forecast.
Euro (EUR) stable amid guarded Ukraine optimism
The euro (EUR) was little changed on Monday, supported by cautious optimism over forthcoming peace talks between US President Donald Trump and Russian President Vladimir Putin.
Despite widespread doubt over the chances of a breakthrough, investors are hopeful the meeting could mark the first step toward ending more than three years of conflict in Europe.
Looking ahead, the euro may face headwinds today if Germany’s ZEW economic sentiment index confirms a decline in confidence in the Eurozone’s largest economy.
US dollar (USD) lifted by risk-off sentiment
The US dollar (USD) began the week on firmer footing, drawing support from investor caution that bolstered demand for safe-haven assets.
However, gains were capped as markets remained hesitant to make bold moves ahead of the latest US consumer price index (CPI) release.
July’s CPI reading will be closely watched today, with the US dollar likely to strengthen if a strong inflation print reduces expectations for future Federal Reserve rate cuts.
Canadian dollar (CAD) mixed as oil market swings
The Canadian dollar (CAD) experienced uneven trade on Monday, as shifting oil prices drove fluctuations in the commodity-sensitive currency.
In the absence of any notable domestic data, CAD is expected to continue tracking crude price movements through today’s session.
Australian dollar (AUD) falls after RBA rate cut
The Australian dollar (AUD) weakened overnight after the Reserve Bank of Australia (RBA) delivered an expected 25bps cut to interest rates, with Governor Michele Bullock signalling that consecutive rate cuts remain a possibility.
New Zealand dollar (NZD) softens on cautious sentiment
The New Zealand dollar (NZD) also lost ground in overnight trade, weighed down by a prevailing risk-off tone in markets.
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