Pound (GBP) boosted by firmer consumer confidence
The pound (GBP) strengthened against most of its counterparts yesterday as signs of improving UK consumer sentiment offered support.
However, Sterling’s gains were tempered by a rebound in UK government borrowing costs, with gilt yields recovering after falling sharply on Wednesday.
The pound starts today’s session on the back foot after UK retail sales contracted last month, leaving Sterling vulnerable to steeper losses if the upcoming UK PMI figures also disappoint.
Euro (EUR) pressured by energy concerns
The euro (EUR) struggled to attract demand yesterday amid a lack of significant Eurozone economic releases.
Sentiment towards the single currency was also weighed down by renewed concerns about the effect of elevated energy prices on Europe’s industrial sector.
The Eurozone’s latest PMIs take centre stage for EUR investors today, with the euro potentially gaining if the surveys point to another solid expansion across the bloc’s private sector.
US dollar (USD) slides as US debt reaches $40tn
The US dollar (USD) remained under pressure on Thursday, with USD exchange rates falling to fresh multi-month lows.
Growing concerns over America’s debt burden appeared to unsettle investors after US national debt surpassed $40tn for the first time.
Looking ahead, the US dollar could find some support later today as the latest S&P PMIs are forecast to show that the US private sector remains resilient.
Canadian dollar (CAD) supported by firmer oil prices
The Canadian dollar (CAD) moved broadly higher yesterday as continued strength in global oil prices supported the commodity-linked currency.
Looking ahead, Canada’s latest retail sales figures could weigh on the ‘loonie’ later today, with economists forecasting a sharp slowdown in sales growth last month.
Australian dollar (AUD) rises amid risk-on flows
The Australian dollar (AUD) climbed in overnight trade as persistent weakness in the US dollar helped encourage greater risk appetite across markets.
New Zealand dollar (NZD) rallies on positive sentiment
The New Zealand dollar (NZD) also advanced overnight, as the risk-positive mood outweighed disappointing domestic trade figures.
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