Australian dollar (AUD) wavers amid uneven mood
The Australian dollar (AUD) got off to a mixed start this week, amid fresh doubts over the Middle East peace process.
This followed tit-for-tat strikes between the US and Iran over the weekend, and a subsequent US media report that both sides had subsequently agreed to ‘stand down’.
The Reserve Bank of Australia (RBA) will publish the minutes from its latest policy meeting later this morning. A cautious tone from the bank could weigh on AUD.
New Zealand dollar (NZD) pares recent losses
The New Zealand dollar (NZD) outperformed many of its peers on Monday, with the currency’s recent losses making it more attractive to price-conscious investors.
Looking ahead, the ‘kiwi’ may struggle to consolidate these gains if market risk sentiment remains soft through Tuesday’s session.
Pound (GBP) firms as Burnham delivers first major policy speech
The pound (GBP) strengthened yesterday, supported by a broadly positive reaction to Andy Burnham’s first major speech since confirming his bid to become the UK’s next Prime Minister.
Burnham outlined an ambitious plan to rebalance power across the country and boost ‘growth in every postcode’, and although it was light on detail, UK borrowing costs fell following his speech.
Coming up, the UK’s latest GDP figures could offer support to the pound later this evening if they confirm the UK economy expanded at a healthy clip in the first quarter.
Euro (EUR) rangebound as ECB opens Sintra Forum
The euro (EUR) was rangebound through most of Monday’s session, with EUR investors wary ahead of the opening of the European Central Bank’s (ECB) annual Sintra Forum on Central Banking.
After delivering an interest rate hike early in the month, EUR investors were focused on whether there is still scope for further tightening later in the year.
Looking ahead, Germany will publish its latest inflation figures today, with the single currency poised to weaken if price pressures in the Eurozone’s largest economy continued to ease this month.
US dollar (USD) continues to lose momentum
The US dollar (USD) got off to a soft start this week as the currency retained some of its bearish momentum from Friday’s session.
This was linked to some lingering profit-taking as well as a modest improvement in risk sentiment through the European trading session.
Turning to today’s session, movement in the US dollar may remain limited as USD investors brace for several high-impact US economic indicators later in the week.
Canadian dollar (CAD) slips despite uptick in oil prices
The Canadian dollar (CAD) dipped on Monday, despite oil prices ticking higher amid the fresh uncertainty in the Middle East.
Canada’s latest GDP print may weigh on the ‘loonie’ later today as month-on-month growth is forecast to have slowed in May.
Data releases
11:30 AUD RBA Minutes
16:00 German Retail Sales (May)
16:00 GBP GDP (Q1)
22:00 EUR German Inflation Rate (Jun)
22:30 CAD GDP (Apr)