Pound (GBP) advances despite sparse data calendar
The pound (GBP) posted solid gains through yesterday’s session, climbing to its strongest levels in almost a fortnight.
There was little in the way of a domestic catalyst for Sterling’s appreciation, however, with UK economic releases remaining scarce ahead of Thursday’s GDP figures.
Whether the pound can hold onto these gains today remains uncertain as the ongoing lack of UK data continues to limit fresh trading impetus.
Euro (EUR) subdued amid data lull
The euro (EUR) traded in a narrow range on Monday as the absence of notable Eurozone economic releases left the single currency without a clear sense of direction.
EUR sentiment was also constrained by its inverse relationship with the US dollar (USD), which enjoyed a modest recovery during the session.
With Eurozone data once again limited today, the euro is likely to take its cues from broader currency market sentiment.
US dollar (USD) supported by geopolitical uncertainty
The US dollar (USD) edged higher on Monday as diminishing expectations for a near-term US-Iran ceasefire boosted demand for safe-haven assets.
Even so, the currency’s advance remained limited as the ‘greenback’ continued to grapple with the fallout from Friday’s disappointing payrolls report.
Looking ahead, the US dollar may remain rangebound today as investors await its next major test in the form of Wednesday’s inflation figures.
Canadian dollar (CAD) lifted by firmer oil prices
The Canadian dollar (CAD) attracted modest support yesterday as Brent crude climbed back above the $85-per-barrel mark.
The oil-linked ‘loonie’ is expected to remain closely tied to crude price movements through Tuesday’s session, with further appreciation possible if oil continues to strengthen.
Australian dollar (AUD) softens after RBA decision
The Australian dollar (AUD) finished Tuesday’s Asian session slightly lower after the Reserve Bank of Australia (RBA) left interest rates unchanged, despite Governor Michelle Bullock striking a mildly hawkish tone during her accompanying press conference.
New Zealand dollar (NZD) fluctuates in mixed conditions
The New Zealand dollar (NZD) also traded unevenly overnight, with the ‘kiwi’ spiking briefly amid shifts in market risk appetite.
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