Australian Dollar (AUD) Firms amid US Dollar Weakness
The Australian Dollar (AUD) ticked higher during yesterday’s session as a further softening in the US Dollar (USD) bolstered market risk appetite.
However, these gains were capped by ongoing concerns over an outbreak of coronavirus cases in Australia as the city faces new restrictions.
AUD investors will be keeping a close eye on domestic coronavirus headlines today amidst the absence of any notable Australian economic releases, with the ‘Aussie’ poised to fall if the situation in Sydney continues to deteriorate.
Pound (GBP) Weakens on Dovish BoE Commentary
The Pound (GBP) weakened during yesterday’s trading session as a dovish stance from the Bank of England (BoE) dented Sterling sentiment.
The BoE kept interest rates unchanged at 0.1% as expected, but the bank’s forward guidance proved disappointing as it didn’t address potential tapering dates and cast doubts on the possibility of interest rates starting to rise from 2022.
The publication of the Confederation of British Industry’s (CBI) latest distributive trade index, could provide some support for the Pound today, but only in the absence of any negative coronavirus headlines.
Euro (EUR) Supported by German Ifo Business Confidence
The Euro (EUR) was supported against many of its major rivals during yesterday’s European session as the latest German business confidence index printed above expectation in June, strengthening the single currency.
Moreover, the Euro’s strong negative correlation with the US Dollar provided support to EUR exchange rates as the ‘Greenback’ weakened.
Today will see the release of the latest Gfk consumer confidence index from Germany which could provide fresh support to the Euro if household morale continues to improve.
US Dollar Weakens on back of Lacklustre Economic Data
The US Dollar (USD) weakened during yesterday’s session as a relatively upbeat market mood paired with lacklustre data from the US caused the ‘Greenback’ to struggle.
Thursday’s initial US jobless claims and durable goods orders both printed below market expectations, raising concern over the trajectory of the US economic recovery and dampening USD demand.
May’s PCE price index could provide an opportunity for the US Dollar to rally today, if the Federal Reserve’s preferred indicator for inflation reports that inflationary pressure continues to build.
Canadian Dollar (CAD) Firms as Oil Consolidates at New Two-Year High
The Canadian Dollar (CAD) firmed during Thursday’s trading session, with the appeal of the commodity-linked ‘Loonie’ being bolstered as WTI crude held at above $73 a barrel.
New Zealand Dollar (NZD) Steady on Upbeat Market Mood
The New Zealand Dollar (NZD) found itself steady during yesterday’s session despite a lack of notable data as an upbeat market mood continues to support ‘Kiwi’ sentiment.
Data Releases
Jun 25th 16:00
EUR Gfk Consumer Confidence (Jun) -3
Jun 25th 20:00 GBP CBI Distributive Trades (Jun) 14
Jun 25th 22:30 USD Personal Spending (May) 0.4%
Jun 25th 22:30 USD PCE Price Index (May) 4.2%