Australian Dollar (AUD) Strengthening on Upbeat Market Mood
The Australian Dollar (AUD) found itself edging higher for much of yesterday as a more upbeat market mood kept the ‘Aussie’s’ appeal on a positive footing.
However, a lack of notable data limited any major Australian Dollar gains as markets awaited the latest interest rate decision from the US.
Australian Dollar investors will look towards today’s employment change data from Australia which could provide fresh support for AUD heading into the weekend.
Pound (GBP) Supported by Strengthening UK Inflation Rate
The Pound (GBP) saw itself heading higher yesterday following a better-than-expected inflation reading from the UK for May.
UK inflation rose to 2.1%, higher than the 1.8% forecast and above the Bank of England’s (BoE) target of 2%, stoking speculation regarding a potential tightening of monetary policy in the future.
A lack of data could however leave Sterling open to losses throughout today as investors keep an eye on any further coronavirus developments.
Euro (EUR) Muted amid Absence of Data
The Euro (EUR) weakened against many of its major rivals during yesterday’s European session as a lack of notable data limited the appeal of the single currency.
Investors also remained wary of the Euro ahead of the latest Federal Reserve policy decision.
The Eurozone’s latest CPI figures could provide support for EUR exchange rates today if inflation is shown to have beaten forecasts in May.
US Dollar (USD) Awaits Latest Federal Reserve Interest Rate Decision
The US Dollar (USD) had been cautiously trading for much of yesterday’s session as markets awaited the latest interest rate decision from the Federal Reserve (Fed) early this morning.
Whilst the Fed is not expected to change interest rates from 0.25%, the latest economic projections from the FOMC could give an indication into how the bank expects the US’s economic recovery to continue.
Later today will also see the release of the most recent initial US jobless claims for the week ending 12th June, which could provide a fresh boost to the ‘Greenback’ if new claims continued to fall last month.
Canadian Dollar (CAD) Steady on Canadian Inflation
The Canadian Dollar was steady for much of yesterday, following the release of the latest Canadian inflation figures, which printed above expectations in May. More so, rising oil prices kept the commodity-correlated ‘Loonie’ more appealing to investors.
New Zealand Dollar (NZD) Gains as Commodity Prices Rise
The New Zealand Dollar (NZD) ticked higher through most of yesterday’s session, with the ‘Kiwi’ garnering support amidst rising commodity prices.
Data Releases
Jun 17th 04:00 USD Federal Reserve Interest Rate Decision 0.25%
Jun 17th 11:30 AUD Employment Change (May) 40k
Jun 17th 22:30 CAD ADP Employment Change (May) 250k
Jun 17th 22:30 USD Initial Jobless Claims (12/Jun) 359,000