Pound (GBP) lifted by stronger-than-forecast GDP
The pound (GBP) found some support yesterday after the UK’s second-quarter GDP figures surpassed expectations.
The British economy grew by 0.3% in Q2, beating forecasts of 0.1% growth. However, as this marked a slowdown from the 0.7% expansion recorded in Q1, Sterling’s gains were modest.
With no major UK economic data due today, the pound may trade without a strong directional bias.
Euro (EUR) softens ahead of Trump-Putin talks
The euro (EUR) edged lower against many peers yesterday as investors appeared uneasy ahead of discussions on Ukraine between US President Donald Trump and Russian President Vladimir Putin.
The single currency also faced headwinds from its inverse relationship with the strengthening US dollar (USD).
Today, EUR may remain under pressure as Trump and Putin convene in Alaska to discuss peace initiatives. Any developments from the summit could trigger volatility in the euro.
US dollar (USD) gains as hot PPI cools rate cut bets
The US dollar advanced yesterday after producer price inflation in July exceeded forecasts, dampening expectations of an aggressive Federal Reserve rate-cutting cycle.
US PPI jumped 0.9% in July versus predictions of 0.2%, raising the possibility of stronger consumer inflation ahead. Additionally, jobless claims came in below expectations, further supporting USD.
Attention now turns to the latest US retail sales data. A solid July reading could give the ‘greenback’ another boost.
Canadian dollar (CAD) buoyed by oil price gains
The oil-sensitive Canadian dollar (CAD) strengthened against weaker counterparts yesterday, helped by rising crude prices and USD strength.
Today, oil market trends may remain the key driver for CAD. Sustained upward momentum in prices could provide a further lift to the ‘loonie’.
Australian dollar (AUD) steadies on China stimulus hopes
The Australian dollar (AUD) saw modest gains overnight as softer Chinese data fuelled speculation that Beijing may roll out additional economic stimulus measures.
New Zealand dollar (NZD) unmoved despite upbeat PMI
The New Zealand dollar (NZD) was subdued overnight, failing to benefit from a surprise return to growth in the country’s manufacturing PMI for July.
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