Pound (GBP) rudderless in absence of data
The pound (GBP) continued to trade without a clear directional bias yesterday amid an ongoing lack of UK economic releases.
GBP investors were also cautious of placing aggressive bets ahead of the Bank of England (BoE) interest rate decision, which is being announced later today.
The BoE decision could drive notable movement in the pound. If the bank reiterates its cautious stance on interest rates, Sterling could slide.
Euro (EUR) unsure as markets await data releases
The euro (EUR) was also mixed yesterday, as an absence of Eurozone data left EUR with little fresh impetus.
The common currency was also muted as investors awaited some high-impact data due to be published through the latter part of the week.
The Eurozone’s second-quarter GDP figures are the focus for EUR investors today. Could a recovery in growth buoy the common currency?
US dollar (USD) slides following Fed decision
The US dollar (USD) initially traded in a narrow range yesterday, with investors avoiding taking strong positions in the currency ahead of the Federal Reserve’s interest rate decision.
USD then slumped in the wake of the Fed announcement, as a relatively neutral tone and a 9-3 vote to hold rates steady saw markets trim rate hike bets.
Looking forward, the first estimate for US GDP in the second quarter and the core PCE price index for June are both due out today. Steady growth could support USD, although cooling inflation may put some pressure on the ‘greenback’.
Canadian dollar (CAD) firms as oil prices rise
The crude-linked Canadian dollar (CAD) rose during yesterday’s session, with oil prices jumping around 7% following an Iranian ‘surprise attack’ in the Middle East and vows to retaliate from US President Donald Trump.
Oil price dynamics are likely to drive CAD today amid a lack of Canadian data. Could Fresh Middle East tensions see crude prices rise and therefore underpin the ‘loonie’?
Australian dollar (AUD) struggles amid cautious trade
The Australian dollar (AUD) was subdued overnight as a cautious market mood dampened demand for the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) rebounds as business confidence improves
The New Zealand dollar (NZD) recovered during Thursday’s Asian trading session after New Zealand’s latest business confidence index smashed forecasts to jump to a five-month high.
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