The British pound has posted considerable gains for a second consecutive day. Currently, GBP/USD is trading at 1.3767, up 0.37% on the day. It has been a volatile week for the pair, which declined by 1% early in the week but has recovered these losses. Markets eye UK Retail Sales, PMIs It may not qualify as a data dump, but with three key UK events on Friday, investors will finally have some data to digest in what has been a very light calendar week. The UK releases retail sales for June (6:00 GMT). The May report was a disappointment, as the headline reading came in at -1.4% and core retail sales at -2.1%. June data should be stronger, with retail sales expected at 0.4% MoM and 9.6% … [Read More...]

The euro has started the week with limited gains. In North American trade, EUR/USD is trading at 1.1817, up 0.12% on the day. ECB expected to adjust forward guidance ECB monetary policy meetings are generally tame affairs that cause limited movement in the markets. The meeting this coming Thursday is likely to be different, and could well be a market-moving event. The reason is that the ECB is expected to implement significant changes in policy. The ECB presented a strategy review earlier this week and ECB President Christine Lagarde said that there would be a review of forward guidance to align it to the strategy review. This means that we could see some important changes to forward guidance at the meeting. The strategy review raised the … [Read More...]

The Japanese yen has posted considerable gains in Monday trade. In the North American session, USD/JPY is trading at 109.50, down 0.47% on the day. Earlier in the day, the pair dropped as low as 109.05, its lowest level since May. Yen shines as Covid fears spook markets With the Delta Covid variant spreading ominously across the globe, investors are responding by fleeing to safety. The Japanese yen is a traditional safe-haven asset, and investors have been dumping risky assets such as the Australian dollar and snapping up yen. There are concerns that the Delta variant will have a sharp negative impact on global growth. This could accelerate the move away from risk and towards safe havens such as the yen. In addition to the worsening Covid … [Read More...]

The New Zealand dollar has reversed directions and is down considerably on Thursday. Currently, NZD/USD is trading at 0.6986, down 0.61% on the day. New Zealand CPI eyed After the RBNZ grabbed the headlines on Wednesday and sent the New Zealand dollar sharply higher, attention now shifts to New Zealand CPI for the second quarter. The consensus is for a strong gain of 2.8% YoY, up sharply from 1.5% in Q1. Keeping in mind that the RBNZ has set an inflation target in the 1-3% range, the upcoming CPI release could well overshoot the target, which would raise pressure on the bank to tighten policy. A reading that is higher than expected should lift the New Zealand dollar. With the RBNZ announcing that is halting asset purchases, … [Read More...]

The Canadian dollar is trading quietly in the European session. Currently, USD/CAD is trading at 1.2518, down 0.09%. Canada releases key employment data later in the day (12:30 GMT). Canadian dollar bulls are hoping for a strong outing from Employment Change. It has been a rough week for the Canadian dollar, with USD/CAD climbing 1.57%. On Thursday, the pair climbed to 1.2590, its highest level since April 21. The Canadian dollar, which is sensitive to commodity prices, has been hurt by the drop in oil prices this week. With the OPEC+ group failing to reach an agreement, there are concerns that producers will sharply increase production come April of next year, when the current deal expires. Canada job data expected to improve Canada’s labour market is expected … [Read More...]