Pound (GBP) trades sideways amid sparse data
The pound (GBP) struggled to find a clear direction yesterday as a lack of UK economic data left Sterling without a strong catalyst.
This resulted in limited movement, with GBP largely trading sideways against most of its peers.
The Confederation of British Industry’s (CBI) latest distributive trades survey is scheduled for release today. A modest improvement could offer some support to GBP, although any gains may prove limited.
Euro (EUR) supported by positive German data
The euro (EUR) strengthened slightly yesterday after upbeat economic data from Germany offered the single currency some support.
Germany’s final second-quarter GDP figures were revised marginally higher, while the latest IFO business climate index improved by more than expected. However, EUR’s upside remained relatively restrained.
EUR could see some movement today in response to a speech from European Central Bank (ECB) policymaker Piero Cipollone. However, any impact from his remarks may be limited.
US dollar (USD) weakens as risk appetite improves
The US dollar (USD) softened yesterday as a slight improvement in market sentiment reduced demand for the safe-haven currency.
Meanwhile, weaker-than-expected US consumer confidence data also failed to support USD in the afternoon, after consumer morale unexpectedly deteriorated in August.
Looking ahead, today’s focus will be on the US core PCE price index – the Federal Reserve’s preferred inflation measure. If inflation remained steady in July, USD could find some support.
Canadian dollar (CAD) pressured by trade concerns
The crude-linked Canadian dollar (CAD) remained under pressure yesterday, lingering near multi-week lows against some peers as falling oil prices and concerns over a US-Canada trade war weighed on the currency.
Looking to today, the ‘loonie’ may continue to face headwinds if ongoing trade tensions continue to unsettle CAD investors.
Australian dollar (AUD) climbs following hotter inflation
The Australian dollar (AUD) advanced overnight after Australia’s latest inflation figures came in above expectations, strengthening bets on further monetary tightening from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) weakens amid political uncertainty
The New Zealand dollar (NZD) softened overnight as domestic political uncertainty continued to weigh on the currency.
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