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Pound Mixed Following UK Inflation Rate Data

Pound News: Sterling Mixed after UK Inflation Rate Data

The Pound has been mixed for much of the day following the latest inflation rate data from the UK. Annual inflation more than doubled to 1.5% in April, the highest level seen since the beginning of the pandemic.

In the absence of significant data releases on Thursday, Pound investors will be looking towards the latest retail sales data and PMIs on Friday. While retail sector growth is expected to have slowed, the UK services PMI is forecast to show another robust expansion.

Euro News: Euro Makes Modest Gains

The Euro edged higher today despite a lack of notable data from the Eurozone and a resurgence in the US Dollar limiting the single currency.

Earlier in the day, EUR exchange rates received support from confirmation that the Eurozone inflation rate rose to 1.6% in April.

The latest flash PMI data on Friday from the Eurozone for May is forecast to show sustained growth in the services and manufacturing sectors during May, which could add some much needed support for the Euro.

US Dollar News: US Dollar Heads Higher on Rising Yields

The US Dollar has been supported against many of its major rivals for most of the day following a rise in US Treasury yields and a weakening market mood pushing investors towards the safe-haven ‘Greenback.’

The latest initial US jobless claims for the week ending May 15th could support USD exchange rates through tomorrow’s session as claims are forecast to have decreased again.

Canadian Dollar News: CAD Mixed as Oil Prices Drop

The Canadian Dollar has been mixed for much of the day as a drop in WTI crude prices weighed on the oil-sensitive ‘Loonie’. The latest inflation rate data from Canada rose more than expected to 3.4% as the country recovers from the worst of the coronavirus pandemic.

Australian Dollar News: ‘Aussie’ Weakens on Risk-Off Trade

The Australian Dollar has been lower today as rising risk-aversion and a strengthening US Dollar limits AUD. In addition, consumer confidence dipped slightly in May, although it remains near April’s 11-year high.

Investors will be awaiting the latest employment data from Australia which is forecast to show that the unemployment rate dropped to 5.5% in April.

Upcoming Data

Thursday, 20th May

02:30    AU Unemployment Rate (Apr)

13:30    CA ADP Employment Change (Apr)

13:00    US Initial Jobless Claims (15/May)

Friday, 21stth May

12:00    AU Markit Services PMI Flash (May)

07:00    UK Retail Sales YoY (Apr)

13:30    CA Retail Sales YoY (Mar)

15:00    EU Consumer Confidence Flash (May)