Pound (GBP) pressured by weak employment data
The pound (GBP) came under pressure through yesterday’s session following the publication of the UK’s latest employment report.
An unexpected rise in unemployment, alongside slower wage growth, weighed on Sterling as the figures reduced the likelihood of the Bank of England (BoE) tightening monetary policy again later this year.
The UK’s consumer price index takes centre stage today. Inflation climbed to a four-month high in July, although this has so far done little to lift Sterling as it appears to have had limited influence on BoE rate expectations.
Euro (EUR) steady as German sentiment improves
The euro (EUR) was broadly stable on Tuesday after Germany released its latest ZEW economic sentiment index.
The August survey revealed a stronger-than-anticipated improvement in morale, with robust exports from the Eurozone’s largest economy helping to underpin the reading.
EUR investors will turn their attention to a speech from European Central Bank (ECB) President Christine Lagarde today, with hawkish comments potentially providing the single currency with a stronger boost.
US dollar (USD) supported by safe-haven flows
The US dollar (USD) edged higher yesterday as the expiry of the 60-day Memorandum of Understanding between the US and Iran weighed on market sentiment and increased demand for the safe-haven currency.
However, the upside remained limited as higher US Treasury yields continued to fuel concerns surrounding the country’s mounting debt burden.
Looking ahead, the publication of minutes from the Federal Reserve’s latest policy meeting will be the main focus for USD investors today as they seek further clues about the central bank’s future policy direction.
Canadian dollar (CAD) lifted by firmer oil prices
The Canadian dollar (CAD) strengthened on Tuesday as higher oil prices provided a boost to the commodity-linked currency.
Should crude prices maintain their upward momentum, the ‘loonie’ could attract further support through today’s session.
Australian dollar (AUD) slips on weak wage growth
The Australian dollar (AUD) edged lower overnight on Tuesday after a downward revision to domestic wage growth during the first quarter weighed on sentiment.
New Zealand dollar (NZD) supported by stronger PPI data
The New Zealand dollar (NZD) held steady in overnight trade as Reserve Bank of New Zealand (RBNZ) rate hike expectations strengthened following a surprise jump in domestic producer prices during the second quarter.
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