Pound (GBP)


The Pound (GBP) fell to a one-month low against the US Dollar (USD) yesterday, following the UK government’s decision to delay lockdown easing. Sterling also dropped in its currency pairing with the Euro (EUR).

Fallout from the government’s decision overshadowed the publication of positive unemployment rate and earnings statistics. Figures show that unemployment has dropped and wage growth increased in April.

Looking ahead, the UK’s latest CPI findings may buoy the Pound as data shows a surge in inflation from 1.5% to 2.1% in May. This beats forecasts of a 1.8% rise.

Euro (EUR)


The Euro (EUR) gained momentum yesterday as an uptrend in European stock purchasing saw the stock market post their eighth day of gains.

In addition, publication of Germany’s consumer price index in yesterday’s session continues to bolster the currency, as inflation rose to 2.5%.

Today may see EUR/USD exchange rates weaken ahead of the US Reserve Bank’s interest rate decision, as markets brace for potential changes to the bank’s forward guidance.

US Dollar (USD)


The US Dollar (USD) saw slight upwards movement yesterday, before levelling out in the second half of the session. The ‘Greenback’ is holding steady amidst a bearish mood in anticipation of the Fed’s interest rate decision.

The modest pullback in the US Dollar was linked to a larger-than-expected contraction in domestic retail sales in May.

USD investors are keen to know whether the central bank may decide to taper bond purchases, in response to the recent surge in inflation.

It’s possible that the US Dollar will continue to trade sideways as investors wait for the Fed’s monetary policy update.

Canadian Dollar (CAD)


In spite of rising oil prices, the Canadian Dollar (CAD) fell yesterday. While WTI crude sold at over $72 a barrel, USD’s steady performance may have capped CAD’s gains.

Canada’s inflation figures released later today may inspire movement in the ‘Loonie’, although the Fed’s interest rate decision could overshadow its effect.

Australian Dollar (AUD)


The Australian Dollar (AUD) traded higher overnight and continues to firm despite the Westpac Leading Index undershooting expectations by reporting a 0.06% decline in May.

With Chinese industrial production and retail sales figures printing below expectations however, the ‘China proxy’ may see a downturn later in today’s session.

New Zealand Dollar (NZD)


The New Zealand Dollar (NZD) also ticked higher in overnight trade in response to rising commodity prices.