Australian Dollar (AUD) Retreats on US Dollar Strength
The Australian Dollar (AUD) initially strengthened during yesterday’s session as a rebound market mood bolstered the appeal of the ‘Aussie’.
However, a strengthening US Dollar prompted the ‘Aussie’ to relinquish most its gains during the European trading session, amidst a lack of domestic data to other any other directional support to AUD.
The Australian Dollar could be open to losses further today if the market mood becomes more cautious following the latest FOMC minutes this morning.
Pound (GBP) Weakens on UK Reopening Worries
The Pound (GBP) weakened during yesterday’s session on the back of fresh concerns over the UK’s proposed lockdown easing on the 19th July.
More experts have stepped forward to say that the scrapping of social distancing measures and face masks is the wrong move, with businesses warning the self-isolation rules could disrupt the economic recovery.
Pound investors will be looking towards any further coronavirus developments to drive movement in GBP exchange rates today.
Euro (EUR) Firms in spite of Weak German Industrial Production Figures
The Euro (EUR) firmed against many of its major rivals on Tuesday, despite German industrial production figures unexpectedly falling for the second-consecutive month.
More so, a strengthening US Dollar kept the appeal of the Euro low due to the strong negative correlation between the pairing.
Euro investors will be focused on the minutes from the European Central Bank’s (ECB) latest policy meeting today, with EUR exchange rates potentially weakening if they reinforce the bank’s dovish bias.
US Dollar (USD) Supported by US JOLTs Job Opening Figures
The US Dollar (USD) had spent much of the day trending lower against many of its major rivals, however the latest job opening data from the US bolstered the appeal of the ‘Greenback’.
This morning the FOMC minutes are expected to drive movement in USD exchange rates, with USD exchange rates seek to firm if they reaffirm the Federal Reserve’s recent hawkish turn.
Later this evening last week’s initial US jobless claims could provide fresh impetus for the currency, with the continued drop in new claims potentially propelling the US Dollar even higher.
Canadian Dollar (CAD) Mixed on Tumbling Oil Prices
The Canadian Dollar (CAD) was mixed for much of yesterday’s session as oil prices tumbled following the OPEC+’s decision to cancel their latest meeting, limited the appeal of the commodity-linked ‘Loonie’.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) found itself weakening during yesterday’s session as a more cautious market mood kept ‘Kiwi’ sentiment low.
Data Releases
Jul 8th 04:00 USD FOMC Minutes
Jul 8th 12:30 AUD RBA Gov Lowe Speech
Jul 8th 22:30 USD Initial Jobless Claims (03/Jul) 350k