Pound News: GBP Steady Despite Soaring Business Confidence
The Pound (GBP) was mostly muted against its peers today despite UK business confidence jumping ahead of the 19 July lifting of lockdown measures.
A survey from BDO, a business advisory firm, revealed that business optimism has leapt to its highest level since 2005, with hiring intentions soaring to a record high.
Today also saw health secretary Sajid Javid ask the question of ‘If not now, when?’ concerning the easing of lockdown restrictions next week.
Consequently, Pound investors have become more confident about the outlook for the UK’s economy, although some remain cautious amidst rising daily cases of Covid-19 and hospitalisations.
Euro News: EUR Rangebound as Delta Covid-19 Cases Rise in Europe
The Euro (EUR) struggled today due to a lack of notable Eurozone economic data.
Added to this, concerns over rising cases of the Delta variant of the coronavirus throughout the Eurozone has also weakened confidence in the bloc’s economic recovery.
Today saw the release of the German wholesale price index for June, which rose by 10.7% year-on-year and 1.5% month-on-month.
Euro investors will be looking ahead to tomorrow’s release of the latest German inflation data for June. Could an improvement in the outlook for the Eurozone’s biggest economy see the single currency rise against the US Dollar and Pound?
US Dollar News: Improving Risk-Sentiment Weighs on ‘Greenback’
The US Dollar fell today following an improvement in risk sentiment following the Chinese central bank’s (PBoC) decision to reduce the reserve requirement ratio by 0.5%. This means that there will be one trillion yuan circulated into the economy.
As a result, demand for the safe-haven ‘Greenback’ fell during today’s session, with investors becoming more optimistic about the outlook for the global economy.
Today also saw a lack of any notable US economic data. Instead, USD investors are looking ahead to tomorrow’s release of the latest US inflation data.
Any improvement in the outlook for the US economy or speculation about a more bullish Fed would drag down demand for the safe-haven US Dollar.
Canadian Dollar News: CAD Benefits from Falling Levels of Canadian Unemployment
The Canadian Dollar benefited from strong Canadian employment data. Canada added 230,700 jobs in June, beating forecasts of 195,000. Unemployment fell from 8.2% to 7.%.
In an absence of economic data today, the ‘Loonie’ has remained sensitive to oil prices. Could rising oil prices however push-up the CAD exchange rate later this week?
Australian Dollar News: Fading Risk Sentiment Leaves ‘Aussie’ Flat
Despite improving risk sentiment, the Australian Dollar has remained relatively flat against its peers.
With improving risk mood, however, we could see demand pick-up for the risk-sensitive ‘Aussie’ this week as key economies continue to reopen.