Lack Of Data Keeps Forex Markets Static
On Monday European trading was rather stilted due to a lack of influential economic reports. However, an increase in the Lloyds business confidence index and a decline in the Eurozone’s Sentix investor sentiment measure did help the Pound edge higher against the Euro. Sterling volatility could be occasioned in the hours ahead if today’s UK manufacturing and industrial production reports defy expectations.
While US data was thin on the ground yesterday, the ‘Greenback’ maintained a stronger position against the Euro and was holding steady against the Pound. Today sees the publication of US JOLTS job openings figures. As the employment measure is favoured by Fed Chairwoman Janet Yellen, a good result could inspire US Dollar gains. The NFIB small business confidence gauge will also be of interest.
The news that the Eurozone’s Sentix investor confidence measure slid in June rather than rallying as forecast pushed the Euro lower against the Pound on Monday. While the UK’s industrial/manufacturing production figures could have a notable impact on the Pound to Euro exchange rate today, fluctuations could also follow the release of Italian GDP figures.
After strengthening against its peers in response to Chinese trade and Japanese growth figures, the Australian Dollar held gains throughout Monday’s European session. Overnight Australia’s home loans data showed unexpected stagnation in April, but investment lending surged by 2.3 per cent.
New Zealand Dollar
Overnight a report detailing a decline in the pace of manufacturing activity in New Zealand caused some softening in the domestic Dollar. Although investors will be looking ahead to the Reserve Bank of New Zealand’s rate decision, ‘Kiwi’ movement may also be caused by the nation’s card spending figures, due out later today.
The Canadian Dollar might have broadly softened on Friday in response to a slightly disappointing domestic employment report, but the commodity-driven currency was able to advance on peers like the Pound after domestic housing starts were shown to have jumped to their strongest level since November last year.
South African Rand
The Rand was holding steady against the US Dollar ahead of the publication of South African business confidence and manufacturing production figures. Should the reports disappoint, Rand losses are likely to occur.
Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.
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