Pound Sterling (GBP)
It’s been another poor day for Pound exchange rates with the week’s UK developments offering no respite for Sterling.
The latest damage done to the UK economy (and the Pound by extension) has come from the Royal Institute of Chartered Surveyors (RICS) house price balance for July, which has shown a worrying drop from 15% to 5%.
Given that only 5% of home sellers saw a rise in prices compared to a fall, the outcome of the EU Referendum has been squarely blamed as the cause of this latest disappointment for sellers in the housing market.
The week is set to close poorly for the Pound tomorrow, when the annual construction output for June is announced; this been predicted to drop from -1.9% to -2.3%.
Thursday saw a run of Euro fluctuations, with EUR alternately rising and falling against its most traded currency peers.
Domestic data from the Eurozone in the morning has been focused on France and Italy, with both nations releasing inflation rate data for July.
For France, the base finalised inflation rate has remained at 0.2% on the year and -0.4% on the month, while Italian finalised inflation stayed at -0.1% on the year and 0.2% on the month.
The next notable Eurozone data is not due for release until tomorrow, when final German inflation data and Eurozone growth numbers are published.
US Dollar (USD)
The US Dollar has been on strong form today, having climbed by a considerable amount against most of its rivals.
The latest economic data from the US was actually negative, with an unexpected rise in crude oil stocks pushing the price of the commodity down, along with the value of the US Dollar.
Additionally, the July monthly budget statement fell from 6bn to -113bn, a significant worsening on forecasts of -36bn.
A sudden return of risk aversion has been largely responsible for the ‘Greenback’s strength today.
The day’s US data will consist of jobless claims stats for late July and early August, which are expected to respectively rise and fall.
Australian Dollar (AUD)
After gaining for much of the week, the Australian Dollar remained comparatively firm on Thursday.
The latest Australian domestic data came yesterday, when Reserve Bank of Australia (RBA) Governor Glenn Stevens gave his parting speech with the central bank and the Westpac consumer confidence result was shown to have risen in August.
Aside from commodity news and the performance of the US Dollar, there is not expected to be much influencing the ‘Aussie’ before the weekend.
The next notable data is due on Tuesday, when the RBA minutes for August will be announced alongside the new motor vehicle sales for July.
New Zealand Dollar (NZD)
The New Zealand Dollar reversed some of its previous gains as Thursday’s European session continued.
The ‘Kiwi’ initially spiked when the Reserve Bank of New Zealand (RBNZ) cut the interest rate from 2.25% to 2%, a smaller amount than some had been expecting.
As is often the case, however, investors quickly exploited a temporarily strong currency and mass-traded with the New Zealand Dollar, thereby lowering its value in most exchange rates.
Tonight will bring further New Zealand data, consisting of the Business NZ PMI result for July as well as the Q2 retail sales number. Forecasts have been respectively negative and positive.
Canadian Dollar (CAD)
The Canadian Dollar rose considerably against its peers as the week drew to a close, with a particularly large gain being seen against the New Zealand Dollar.
Once again lacking in domestic data, commodities news has seen crude oil costs tumble on recent high stock records from the US, while the price of gold per 100 ounces has levelled off at around $1350.
This afternoon will bring an end to the current Canadian data shortage, in the form of the June new housing price index. This previously turned out positive on both the month and the year.