Australian Dollar (AUD) Wavers despite Upbeat Market Mood
The risk-sensitive Australian Dollar (AUD) was unable to gain much traction last Friday, despite risk-on trade.
A lack of Australian data muted the ‘Aussie’, allowing its stronger peers to find success.
Data releases are again thin on the ground today, which may keep the Australian Dollar subdued.
New Zealand Dollar (NZD) Dented by PMI Contraction
The New Zealand Dollar (NZD) weakened last Friday, following a disappointing reading from the latest BusinessNZ PMI.
May’s index printed at 48.9, showing a further contraction in the manufacturing sector. With the New Zealand economy already seeming fragile, this further dip worried NZD investors.
The latest services PSI is due this morning. Another dip could weigh further on the ‘Kiwi’.
Pound (GBP) Boosted by Hawkish BoE Bets
The Pound (GBP gained strength on Friday, with the Bank of England’s (BoE) next interest rate decision drawing closer.
Economists and markets have begun to price in hikes beyond the June meeting, lending significant support to Sterling. Upbeat trade also seemed to boost GBP on Friday, due to its increasingly risk-sensitive nature.
A lack of data today could mean that Sterling is unable to carry its momentum. However, with key inflation data approaching, the Pound could retain some support.
Euro (EUR) Buoyed by ECB Rate Hike Bets
Post-rate hike momentum buoyed the Euro (EUR) last Friday, as hawkish forward guidance from the European Central Bank (ECB) prompted further tightening bets.
The upside following the ECB’s rate decision on Thursday night carried through to the end of the week, underpinning EUR.
As the data calendar is set to be sparse today, continued bets on further hikes from the ECB may keep the Euro afloat.
US Dollar (USD) Rallies on Increased Consumer Optimism
Earlier in the session, the safe-haven US Dollar (USD) saw muted trade, as hints of a peak in US interest rates sparked an upbeat mood.
However, the ‘Greenback’ saw support overnight following a larger-than-forecast increase in US consumer sentiment.
With a lack of data on the calendar for today, the ‘Greenback’ could remain muted by undertainty over the Federal Reserve’s path forward.
Canadian Dollar (CAD) Mixed as Oil Prices Fluctuate
The Canadian Dollar (CAD) saw mixed fortunes last Friday, as a slip in crude oil prices capped gains from elevated Bank of Canada (BoC) rate hike bets.
This evening’s PPI data may bolster the ‘Loonie’ – economists forecast a 0.2% increase, which could spark further BoC bets.
Data Releases
Jun 19th 08:30 NZD NZ Services PSI (May) 49.1
Jun 19th 22:30 CAD PPI (May) 0.2%