Australian Dollar (AUD) Weakens as Risk Appetite Softens
The Australian Dollar (AUD) found itself weakening during yesterday’s session as slump in risk appetite following the Federal Reserve’s latest forward guidance dented the appeal of the ‘Aussie.’
Better-than-expected employment figures could not add any support to AUD as the strength of the US Dollar overpowered the currency.
A lack of notable data could today see the Australian Dollar open to further losses against many of its major rivals, assuming a risk-off mood continues to prevail.
Pound (GBP) Supported by UK International Travel Hopes
The Pound (GBP) saw itself heading higher yesterday following a more positive mood surrounding the UK’s economic recovery from the coronavirus pandemic.
Reports that fully vaccinated Brit’s would be able to travel to amber list countries added further support to Sterling.
Today’s retail sales from the figures could provide the Pound with an added boost heading into the weekend, if sales growth remained robust in May.
Euro (EUR) Weakens following US Dollar Strength
The Euro (EUR) weakened against many of its major rivals during yesterday’s European session following a resurgence in the US Dollar.
Markets became jittery following the news that the Federal Reserve expect to hike interest rates sooner than expected, with the negative correlation between the Euro and US Dollar weighing sharply on the single currency.
In absence of any data today the Euro could find itself heading lower if the US Dollar continues to strengthen.
US Dollar (USD) Supported by Federal Reserve Commentary
The US Dollar (USD) surged yesterday as the currency continued to attract investors in the wake of the latest Federal Reserve interest rate decision.
The Fed’s surprisingly hawkish turn and forecasts that the next rate hike could come in 2023 helped to stretch the US Dollar’s winning streak into a second session.
Initial US jobless claims rose for the first time in 6 weeks, though this wasn’t enough to offset the strength of the ‘Greenback’, which looks poised to close the week on a high as the bullish mood surrounding the US Dollar looks to remain firmly in place today.
Canadian Dollar (CAD) Weakens as Canadian Employment Fails to Impress
The Canadian Dollar weakened yesterday following the release of the latest Canadian ADP employment figures, which fell below forecasts, printing at just 101,600 in May.
New Zealand Dollar (NZD) Weakens on Cautious Market Mood
The New Zealand Dollar (NZD) spent much of yesterday’s session cautiously trading as a cautious market mood limited the appeal of the ‘Kiwi.’
Data Releases
Jun 18th 16:00 GBP UK Retail Sales (May) 1.6%
Jun 18th 22:30 CAD New Housing Price Index (May) 0.6%
Jun 21st 11:30 AUD Retail Sales (May) 0.5%