Pound Sterling (GBP)
The Pound been risen across the board today, having been gifted an extremely pleasant surprise in the form of the UK’s jobs data for July and June.
July’s claimant count change has fallen from 0.4k to -8.6k, against forecasts of a rise to 5.5k.
In addition, average earnings both including and excluding bonuses rose in June, while the UK’s unemployment rate remained static at 4.9%.
Thursday morning may see the Pound’s latest gains eroded, however, if the July retail sales results fall; the latest forecasts have been for a mixed outcome.
The Euro has managed to retain the interest of investors today despite limited Eurozone data.
The latest major news out of the single currency bloc, ZEW surveys of economic sentiment for Germany and the Eurozone, were published yesterday and rose on the month.
Given that today’s Latvian and Belgian announcements are considered low-impact, the next real movement for the single currency may come tomorrow when the French unemployment rate for Q2 is announced in the early morning; recent forecasts have been for a positive reduction from 10.2% to 10.1%.
US Dollar (USD)
The US Dollar has risen against almost all of its peers today, with a slight drop against the South African Rand being the one exception.
This latest uptrend for the ‘Buck’ has been facilitated by recent remarks from Fed official Dennis Lockhart, who indicated that he sees at least one US interest rate hike taking place in 2016.
The rest of the day will bring further Fed input, with official James Bullard speaking during the evening and the release of the Fed’s July minutes coming shortly after this.
Australian Dollar (AUD)
The Australian Dollar has been in low demand on Wednesday, with losses being seen in virtually all ‘Aussie’ currency pairs.
The latest news out of Australia concerned the Westpac leading index for July, which rose from -0.22% to 0.05%, as well as the Q2 wage cost indices, which have remained at 0.85% on the quarter and 2.1% on the year. As this figure measures wage growth, stagnation is not a desirable outcome for watchers of the Australian economy.
Tomorrow morning will bring Australia’s unemployment result for July, which has been predicted to remain at 5.8%.
New Zealand Dollar (NZD)
The New Zealand Dollar has mirrored the Australian Dollar in its exchange rate movement today, having fallen against all but the weaker ‘Aussie’.
This slide is likely due to the rise of the US Dollar, given that the most recent NZ domestic data was broadly positive.
The Q2 unemployment rate fell from a revised 5.2% to 5.1%, while PPI input and output rose out of negative ranges in the second quarter.
Tonight will bring the low-impact ANZ job advertisements result for July, as well as the ANZ August consumer confidence result early tomorrow.
Canadian Dollar (CAD)
The Canadian Dollar fell against most of its peers on Wednesday, only managing to rise against the softened Australian Dollar.
The last Canadian data releases were actually positive, showing rising manufacturing sales in June, though as usual the ‘Loonie’ has been weakened by falling costs of both gold and crude oil.
Tomorrow will bring data for June concerning the purchase of foreign securities, both by Canadians and by foreigners. For the latter field, a shift from 14.73bn to 6.9bn has been forecast.