Pound (GBP) directionless with data lacking
The pound (GBP) struggled to find a clear path yesterday as the absence of UK economic releases offered investors little fresh impetus.
GBP traders also avoided making significant moves ahead of tomorrow’s Bank of England (BoE) interest rate announcement.
Sterling may continue to trade in a narrow range today, with the UK economic calendar remaining quiet and attention firmly fixed on tomorrow’s BoE policy decision.
Euro (EUR) strengthens as USD weakens
The euro (EUR) traded without a distinct trend at first yesterday, as the Eurozone calendar provided no market-moving data.
The single currency later advanced during the afternoon, supported by its strong inverse relationship with the US dollar (USD) after the American currency came under pressure.
With little in the way of Eurozone economic releases today, the euro may struggle to establish a clear direction.
US dollar (USD) weakens after confidence disappoints
The safe-haven US dollar lacked conviction early yesterday as mixed market sentiment kept USD rangebound.
The ‘greenback’ then moved lower during the afternoon after the latest US consumer confidence index unexpectedly showed that morale weakened in July.
Shifts in market risk appetite are likely to guide the US dollar today, although trading could remain subdued ahead of tonight’s Federal Reserve interest rate decision. A hawkish message from the Fed could provide USD with fresh support later in the session.
Canadian dollar (CAD) mixed amid oil price fluctuations
The commodity-linked Canadian dollar (CAD) traded with mixed results yesterday as fluctuating oil prices and a lack of domestic economic releases prevented CAD from establishing a clear trend.
With Canadian data remaining limited today, movement in crude prices may continue to dictate CAD’s performance. Should optimism over peace in the Middle East keep oil prices under pressure, the ‘loonie’ may edge lower.
Australian dollar (AUD) falls as inflation eases
The Australian dollar (AUD) declined overnight after Australia’s second-quarter inflation figures unexpectedly cooled, reducing expectations of an August interest rate increase from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) unsteady as market sentiment fluctuates
The New Zealand dollar (NZD) traded unevenly overnight as changing market sentiment caused the risk-sensitive ‘kiwi’ to lose ground before recovering its balance.
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