Pound (GBP) slips lower due to data scarcity
The pound (GBP) drifted downward against its stronger peers on Tuesday, with a quiet UK economic calendar leaving the currency lacking momentum.
Nevertheless, Sterling managed to stave off heavier losses as diminishing anxieties over UK political volatility provided an underlying cushion.
With domestic data remaining scarce during today’s session, the pound could be left to trade sideways.
Euro (EUR) fluctuates despite upbeat German industrial data
The euro (EUR) experienced a varied performance yesterday, as a cautious shift in market sentiment lifted the safer single currency against more risk-sensitive rivals.
An unexpected increase in German industrial production also underpinned EUR, though the common currency was held back by its inverse relationship with a strengthening US dollar (USD).
With the Eurozone calendar looking light today, the single currency may struggle to find traction.
US dollar (USD) strengthens amid cautious market mood
The US dollar caught bids yesterday, as a prevailing wave of risk aversion across global markets drove flows towards the safe-haven currency.
Following attacks on commercial shipping in the Strait of Hormuz, investors remain concerned about a potential geopolitical escalation.
Turning to today, the US dollar could see quieter trade as markets await the release of the Federal Reserve’s June policy meeting minutes tonight. Indications of a hawkish stance from central bankers may provide USD with fresh support later.
Canadian dollar (CAD) advances on firmer crude markets
The commodity-sensitive Canadian dollar (CAD) pushed higher yesterday, buoyed by a bounce in oil prices following the maritime incidents in the Strait of Hormuz.
As Canadian economic indicators are sparse today, oil market dynamics are likely to dictate CAD movement. Heightened geopolitical frictions have continued to lift oil prices, which is helping to support the ‘loonie’.
Australian dollar (AUD) uncertain amid Middle East frictions
The Australian dollar (AUD) exhibited volatile trading during Wednesday’s Asian session, following a fresh exchange of military strikes between the US and Iran.
New Zealand dollar (NZD) surges after hawkish RBNZ rate hike
The New Zealand dollar (NZD) spiked overnight in response to the Reserve Bank of New Zealand (RBNZ) hiking interest rates and indicating that further monetary tightening could be required.
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