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After achieving a fresh seven-year high against the Euro yesterday, the Pound lost out by around 200 pips before the close of trade. While hopes that Greece will vote Yes in the upcoming referendum (and effectively keep the nation in the currency bloc) supported the Euro, Sterling came under pressure due to dovish interest rate hike comments. The Bank of England’s chief economist asserted that interest rates are as likely to be cut as hiked and the Pound broadly softened in response. The pound exchange rate continued trending lower despite a sturdy increase in UK consumer confidence but could recoup losses if today’s UK growth data impresses.

Euro

The dire situation in Greece dragged the Euro to new lows against several of its rivals during the first half of Monday. A below-forecast inflation print for Germany also kept the common currency under pressure. As the nation is due to make a 1.6 billion Euro repayment to the International Monetary Fund (IMF) today, and is largely expected to default on its obligation, the Euro could be in for further volatility in the hours ahead. Today’s annual German retail sales number also came in short of the mark.

US Dollar

As US Pending Home Sales showed a smaller-than-expected increase the Pound Sterling to US Dollar exchange rate was able to record a quarter cent gain during the North American session. ‘Cable’ is currently trending in a narrow range ahead of the publication of UK growth and US Consumer Confidence data. If both reports print in line with expectations the pairing is likely to experience a day of fairly static trade. That being said, the situation in Greece will be a cause of currency market volatility.

Australian Dollar

The Pound lost out against the ‘Aussie’ at the beginning of the week as profit-taking stances and hints that UK interest rates could be cut pressured Sterling lower. The Australian Dollar consolidated gains despite a drop in domestic New Home Sales as Australia’s Private Sector Credit numbers mildly exceeded expectations.

New Zealand Dollar

On Monday the Pound came within touching distance of a fresh five-year high against the New Zealand Dollar and the pairing advanced by a further 0.3% on Tuesday as New Zealand released a series of disappointing reports. Domestic Building Permits stagnated on the month in May while both the Activity Outlook and Business Confidence gauges registered fairly hefty declines. With Chinese manufacturing data due out tomorrow, economists are envisaging additional ‘Kiwi’ movement.

Canadian Dollar

Despite industry experts predicting an uptick in both today’s monthly and annual Canadian GDP figures, the ‘Loonie’ fell by more than a cent against the Pound on Monday. While the commodity-driven currency has since recouped some of these losses, a subpar growth report could leave GBP/CAD trending higher.