Pound News: Construction Data Keeps Pressure on Sterling
The Pound tumbled at the start of the week but rebounded slightly on Tuesday.
Yesterday saw reports that the EU was now treating a no-deal Brexit as the base scenario. However, a UK government official reportedly claimed that the government still wants to forge a new Brexit deal.
Investors are likely to remain focused on Brexit developments today and tomorrow, but UK growth data due for publication at the end of the week could cause some Pound movement as well.
Euro News: Euro Falls Back despite Stronger German Factory Data
Concerns about the health of Germany’s industrial sector have contributed to Euro weakness in recent months, and forecast-beating German factory orders data failed to alleviate these concerns yesterday.
The report’s strength was seen as a one-off, and fears that US-China trade jitters would have a negative impact on the Eurozone left investors with little reason to feel optimistic about Germany’s outlook.
That being said, if today’s German industrial production data beats forecasts it might bolster EUR exchange rates.
US Dollar News: Safe Haven Currencies Steady Following Monday Surge
Following a dip on Monday, the Pound to US Dollar exchange rate trended with an upside bias yesterday as bets that the US/China trade tensions could result in Fed rate cuts reduced demand for USD.
No notable US data will be published today, leaving investors reacting to shifts in safe haven demand and US-China trade relations as investors await US wholesale inventories data, due tomorrow.
Canadian Dollar News: Trade War Fears Keep CAD under Pressure
The Pound to Canadian Dollar exchange rate continues to recover gradually from the multi-year lows struck last week, as US-China trade tensions are leaving trade-correlated currencies like the Canadian Dollar unappealing.
Prices of oil, Canada’s most lucrative commodity, have also taken a beating from the latest trade jitters. These factors have kept CAD under pressure.
Canada’s July Ivey PMI will be published tomorrow and is expected to have improved since June. If the data beats expectations, it could give the Canadian Dollar some fresh support.
Australian Dollar News: ‘Aussie’ Rebound Fails to Push GBP/AUD Lower
After plummeting yesterday on fresh US-China trade fears, the trade-correlated Australian Dollar rebounded yesterday. It benefited from some stronger than expected Australian trade stats, as well as a less dovish than feared tone from the Reserve Bank of Australia (RBA).
However, while these factors led to an Australian Dollar rebound, the Pound was rebounding from its own Monday losses. As a result, GBP/AUD managed to close the day above the week’s opening levels.
Reaction to this morning’s Australian construction PMI data and home loans stats could cause some Australian Dollar movement today, but US-China trade developments are more likely to be influential.
Wednesday, 7th August
Australian Construction PMI
02:30 Australian Home Loans
07:00 German Industrial Production
07:45 French Trade Balance
15:00 Canadian Ivey PMI
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