Pound (GBP) directionless amid data vacuum
The pound (GBP) traded without a clear bias yesterday as the absence of UK economic data left Sterling with little to guide movement.
With market sentiment improving, the increasingly risk-sensitive pound managed modest gains against safer currencies, while losing ground against its higher-risk counterparts.
Looking ahead, the UK’s final services PMI may drive movement in GBP. Should it confirm that the country’s dominant services sector returned to growth in July, Sterling could find renewed support.
Euro (EUR) muted amid quiet data calendar
The euro (EUR) likewise lacked clear direction yesterday as the Eurozone economic calendar offered no fresh data to influence trading.
Consequently, the single currency experienced subdued and uncertain price action.
A final reading confirming that the Eurozone services sector expanded again in July could lend EUR some support today, although a softer producer price index may temper any gains.
US dollar (USD) subdued as US-Iran optimism boosts risk appetite
The safe-haven US dollar (USD) weakened modestly yesterday as optimism surrounding a potential US-Iran ceasefire encouraged investors to favour risk-sensitive assets.
Fresh US economic releases later in the day offered little assistance to USD, with job openings falling and factory orders shrinking in June.
Attention now turns to the latest ISM services PMI. If the survey indicates that activity in the services sector accelerated in July, the ‘greenback’ may strengthen.
Canadian dollar (CAD) pressured by weaker oil prices
The oil-linked Canadian dollar (CAD) came under pressure during the latter half of yesterday’s trading session as hopes of a Middle East ceasefire pushed crude prices lower.
For today, Canada’s economic calendar remains sparse, which could leave the ‘loonie’ taking its direction from movements in the oil market once more.
Australian dollar (AUD) rangebound despite weak data
The Australian dollar (AUD) traded within a limited range overnight as weaker-than-expected industry data was balanced out by improving market sentiment.
New Zealand dollar (NZD) falls as jobless rate climbs
The New Zealand dollar (NZD) declined overnight after figures showed New Zealand’s unemployment rate increased by more than expected during the second quarter.
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