Pound (GBP) stable as political risks recede
The pound (GBP) remained resilient at the beginning of this week, as easing political concerns in the UK continued to underpin Sterling.
However, with no notable UK economic releases to provide fresh impetus, GBP’s gains were capped, leaving it to move sideways against its stronger peers.
UK data is still absent from today’s calendar, which could see the pound trade without a clear directional bias.
Euro (EUR) weakens despite upbeat German data
The euro (EUR) softened yesterday, despite German factory orders rebounding by more than expected in May.
The latest Eurozone retail sales data also failed to lift EUR, as the figures fell short of forecasts by showing a smaller-than-expected recovery.
Germany’s newest industrial production figures were published this morning, revealing an unexpected acceleration in output. Could this be enough to support the single currency today?
US dollar (USD) slips as risk sentiment improves
The US dollar (USD) initially found some support from dip-buying on Monday, as US markets reopened after the long Independence Day weekend.
However, USD then weakened through the afternoon as a brighter market mood reduced demand for the safe-haven ‘greenback’.
The latest ADP weekly employment change figure could influence USD today. Otherwise, shifts in risk appetite may drive movement in the US dollar. The ‘greenback’ may strengthen if fresh Middle East tensions unsettle investors.
Canadian dollar (CAD) struggles as oil prices stay weak
The crude-linked Canadian dollar (CAD) declined yesterday, with oil prices still hovering around their lowest levels since before the US-Iran war.
Today, Canada’s latest Ivey PMI could lend CAD support if it rises to a nine-month high in June, as forecast. A rebound in oil prices following an attack on a tanker in the Strait of Hormuz could also boost the ‘loonie’.
Australian dollar (AUD) dips amid Middle East worries
The Australian dollar (AUD) pared back its Monday gains overnight, as renewed concerns over tensions in the Middle East soured market sentiment.
New Zealand dollar (NZD) retreats as risk appetite weakens
The New Zealand dollar (NZD) also lost ground during overnight trade as the anxious market mood weighed on the risk-sensitive currency.
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