Pound Sterling (GBP)
The Pound has remained in-demand this week, having opened trading on Tuesday in a stronger position against most of its rivals.
UK news due out shortly will cover the Confederation of British Industry (CBI) trends for total orders and selling prices in August. Total orders printed at -4 previously, and have been forecast to shift to -10 this month.
The Euro has fallen in most of its usual currency pairs today, with the latest domestic data out of the Eurozone providing a mixed picture of current conditions.
While France and the Eurozone’s composite and services PMI flashes for August rose instead of falling as expected, the manufacturing results for these two contributors and all of Germany’s PMI flashes fell, resulting in an overall negative reaction from economists and investors alike.
Further high-impact Eurozone data is due today in the form of a speech from European Central Bank (ECB) official Benoit Coeure and the later Eurozone consumer confidence flash for August. This flash has been predicted to worsen from -7.9 to -8.4.
US Dollar (USD)
The US Dollar has changed from being in high demand to suffering from a lack of investor interest from Monday into Tuesday, having dropped off across the board.
Recent domestic data from the US was actually positive, with Monday afternoon’s Chicago Fed national activity index for July rising from 0.05 to 0.27.
With this in mind, it is likely that the latest USD losses have come from investor uncertainty ahead of Friday’s key Jackson Hole Symposium for Fed officials.
US data expected this afternoon will include new home sales in July as well as the Markit manufacturing PMI flash for August; annual home sales are expected to have fallen slightly, while the manufacturing flash also has a decline in store.
Australian Dollar (AUD)
The Australian Dollar edged lower on Tuesday, having suffered from concerns about economic inequality among working Australians as well as the still fluctuating price of iron ore.
Better news has come from Australian data, with the ANZ Roy Morgan weekly consumer confidence index rising from 117.6 points to 121.8.
The week’s first real domestic data from Australia is due early tomorrow, when the July skilled vacancies and Q2 construction work results are set for release.
For the latter result, a technical improvement from -2.6% to -2% has been forecast.
New Zealand Dollar (NZD)
Unlike the Australian Dollar, the New Zealand Dollar has been in high demand lately, having been pushed up against its peers by a weakened US Dollar and recent comments from Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler.
‘Kiwi’ investors have been historically jumpy when it comes to reacting to interest rate news, and recent movement is no exception; Wheeler has spoken against ‘rapid-fire’ interest rate cuts, something that has raised the appeal of the New Zealand Dollar considerably due to the implication of a gentle, rather than aggressive path to lower national interest rates.
Tonight will see the announcement of New Zealand’s trade balance result for July, which is expected to show a reduction in the current surplus from 127m to 14m.
Canadian Dollar (CAD)
The Canadian Dollar has been in low demand against most peers today, with a minor rise against the US Dollar being the sole exception.
While yesterday’s Canadian wholesale sales results for June came in at 0.7%, better than the forecast 0.1%, the price of crude oil per barrel dropping below $49 has eroded any possible positive movement for the ‘Loonie’.
The next weekly Canadian data is due on Thursday, when the extremely low-impact CFIB business barometer for August is due to be announced.