Australian Dollar (AUD) Rises amid Bullish Market Mood
The Australian Dollar (AUD) rose yesterday as an upbeat mood following the Federal Reserve’s interest rate decision lifted the risk-sensitive currency.
However, shockingly strong US data in the evening triggered notable market volatility, with AUD shedding gains against some of its peers.
This morning, the latest retail sales data could weigh on the ‘Aussie’, if the stall economists have forecast comes to pass.
New Zealand Dollar (NZD) Climbs amid Risk-On Impulse
Much like its Australian neighbour, the New Zealand Dollar (NZD) climbed during Thursday’s cheery trade.
Yet the overnight volatility also hit NZD, leading to turbulent trade and losses against some rivals.
Over today’s session, could a forecast rise in consumer confidence lend the ‘Kiwi’ support?
Pound (GBP) Slips on Downbeat Retail Data
During Thursday’s session, the Pound (GBP) stumbled following the Confederation of British Industry’s (CBI) latest distributive trades data.
Printing at -25, far below the forecast -2, the index showed that the UK retail sector is expecting further sales contractions in the future as the cost-of-living crisis intensifies.
Today, a lack of notable economic data could leave Sterling to trade on market dynamics.
Euro (EUR) Sinks as Markets Rein in ECB Bets
The Euro (EUR) sank on Thursday despite the European Central Bank (ECB) raising interest rates to record levels.
Comments from ECB President Christine Lagarde indicated that, while the bank was open to further tightening, this month’s hike may have been its last. EUR slumped in response.
This evening, a duo of German data is set to print. Chiefly, forecasts of a cooldown in inflation could weigh on the Euro, if this prints accurately.
US Dollar (USD) Rebounds amid Promising Economic Expansion
The US Dollar (USD) started on the back foot yesterday after a dovish hike from the Federal Reserve saw traders shun USD.
However, an unexpected acceleration in second-quarter GDP growth reignited Fed bets overnight, seeing the US Dollar rebound strongly.
The ‘Greenback’ may weaken this evening after the publication of the Fed’s preferred gauge of inflation. The core PCE price index is forecast to have cooled to 4.2% in June, which could once again dent rate hike bets.
Canadian Dollar (CAD) Boosted by Oil Price Jump
The crude-linked Canadian Dollar (CAD) gathered pace yesterday, as oil prices rallied. Renewed strength in the US Dollar also aided CAD exchange rates.
Looking ahead, GDP data this evening could impact the ‘Loonie’. Will a 0.1% rise be enough to keep CAD afloat?
Data Releases
Jul 28th 11:30 AUD Retail Sales (Jun) 0%
Jul 28th 11:30 AUD PPI QoQ (Q2) -0.7%
Jul 28th 18:00 EUR DE GDP Growth Rate QoQ (Q2) 0.1%
Jul 28th 22:00 EUR DE Inflation Rate (Jul) 6.2%
Jul 28th 22:30 CAD GDP (Jun) 0.1%
Jul 28th 22:30 USD Core PCE Price Index (Jun) 4.2%