Pound News: Mixed Wage Growth Data Limited Pound Upside
March’s UK wage growth data offered limited support to Pound (GBP) exchange rates, with growth in average weekly earnings found to have eased slightly on the year.
While the domestic labour market continued to tighten this was coupled with persistently disappointing productivity, offering a rather mixed picture of the economic outlook.
With UK data lacking over the coming days the Pound is likely to come under further pressure.
Euro News: Single Currency Shrugs Off Weaker German Growth
Although the first quarter German gross domestic product halved from 0.6% to 0.3% on the quarter this failed to particularly weigh on the Euro (EUR).
As the overall Eurozone figure held steady at 0.4%, bolstered by stronger showings from countries such as Finland and Poland, EUR exchange rates held onto some measure of strength.
If European Central Bank (ECB) President Mario Draghi makes fresh dovish comments in a speech this afternoon, though, the Euro could slide lower across the board.
US Dollar News: Surprise Manufacturing Index Improvement Boosts USD Rates
A surprise improvement in the Empire manufacturing index encouraged investors to pile back into the US Dollar (USD) yesterday.
While the latest US retail sales figures were a little less impressive this was not enough to prevent USD exchange rates returning to a bullish trend.
Even so, with forecasts pointing towards a contraction in building permits the US Dollar could come under renewed pressure today.
Canadian Dollar News: CAD Slumps After Unexpected Home Sales Contraction
Confidence in the Canadian Dollar (CAD) crumbled on Tuesday as April’s existing home sales data showed an unexpected -2.9% contraction on the month.
This suggests that the underlying health of the Canadian economy is not as robust as investors might have hoped, giving the Bank of Canada (BOC) fresh incentive to remain on hold.
As long as oil prices continue to push higher, however, the downside potential of CAD exchange rates is likely to be limited.
Australian Dollar News: Dovish RBA Outlook Weighs on ‘Aussie’
Investors were not impressed by the dovish nature of the Reserve Bank of Australia’s (RBA) May meeting minutes.
As the minutes indicated that an interest rate hike is not likely to be on the table for some months to come the mood towards the Australian Dollar (AUD) naturally soured.
Confidence in the ‘Aussie’ is expected to remain limited as anticipation builds for the latest raft of Australian labour market data.
Wednesday, 16 May
10:00 Eurozone Consumer Price Index
13:00 European Central Bank President Mario Draghi Speech
13:30 Canada Manufacturing Sales
13:30 US Building Permits