Pound (GBP) uncertain amid lack of data
The pound (GBP) lacked a clear directional bias yesterday as UK economic data remained thin on the ground, although it was able to edge up against weaker peers.
Mixed comments from Bank of England (BoE) policymakers failed to decisively move the pound, as officials gave a range of views when questioned by Parliament’s Treasury committee.
UK economic data remains in short supply today, potentially muting the pound. Any movement may be driven by bond market dynamics and domestic headlines.
Euro (EUR) struggles despite German trade data
The euro (EUR) was subdued yesterday, as EUR investors seemed uninspired by Germany's latest trade data.
Although the country’s trade surplus widened to €21.3bn in July – its largest since August 2024 – this was due to imports falling more sharply than exports.
Looking ahead, the euro could face muted movement today as EUR investors brace for tomorrow’s European Central Bank (ECB) interest rate decision.
US dollar (USD) trims gains despite risk-off mood
The US dollar (USD) initially gained ground yesterday as a souring mood supported the safe-haven ‘greenback’.
However, the currency struggled to sustain its upside and trimmed its gains in the afternoon, amid US-Canada trade tensions and a slight pullback in Federal Reserve interest rate hike bets.
Global risk dynamics could drive USD today amid a lack of US economic data. If sentiment remains downbeat, the safe-haven ‘greenback’ may strengthen.
Canadian dollar (CAD) lifted by rising oil prices
The oil-linked Canadian dollar (CAD) rose yesterday as Brent crude – the global benchmark for oil – broke above $99 per barrel, hitting its highest level since late July.
Crude prices are climbing again today following an escalation in the US-Iran war. This could bolster the ‘loonie’ through today’s session.
Australian dollar (AUD) buoyed by rising Chinese inflation
The Australian dollar (AUD) firmed overnight as new data showed that Chinese inflation climbed in August, easing concerns about deflationary pressures in Australia’s largest trading partner.
New Zealand dollar (NZD) rangebound amid lukewarm mood
The New Zealand dollar (NZD) traded sideways overnight as a mixed market mood left the risk-sensitive currency rudderless.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
