United States Dollar:
There was little data from the UK yesterday so investors took time to digest the CPI and wage data from earlier in the week and decided to cash in on sterling strength. Profit taking saw cable slip from 1.7140 first thing yesterday to a low of 1.7085. It currently trades at 1.71 and with a relatively quiet calendar today it should probably hover around this mark until close of play unless geo-political tensions intensify after the Malaysian Airlines crash in Ukraine and the conflict in Gaza. Yesterday saw US Building Permits and Housing Starts come out slightly worse than expected however the Philly Fed and Unemployment Claims printed slightly better. US Unemployment claims haven’t printed above 320k for nine weeks now.
We expect a range today in the GBP/USD rate of 1.7060 and 1.7140
Euro:
Junes final CPI reading from the Eurozone was unchanged from the flash reading of 0.5% with the core reading also unchanged at 0.8%. Holders of the shared currency saw the release as neither a good thing it hasn’t fallen further or bad thing it hasn’t crept up. The threat of QE hangs over the Euro later this year so EUR/USD remains under pressure and touched a six-week low of 1.3512 overnight. It currently trades at 1.3530 and in the absence of any data worth talking about the situation in Ukraine will probably be the main driver in the pair today. GBP/EUR mirrored cables fall yesterday dropping from another recent high of 1.2672 to a session low of 1.2631 on profit taking. It currently trades at 1.2637.
We expect a range today in the GBP/EUR rate of 1.26 to 1.2650
Aussie and Kiwi Dollars:
With no data from Australia and New Zealand in the past 24 hours developments in Ukraine and Gaza pushed the antipodeans lower yesterday evening. The pair seem to have rebounded this morning however with AUD/USD currently trading at .9382 and NZD/USD at .8685. GBP/AUD sits at 1.8225 and GBP/NZD is at 1.9690.
We expect a range today in the GBP/AUD rate of 1.8180 to 1.8290
We expect a range today in the GBP/NZD rate of 1.9630 to 1.9760
Data Releases for the next 24 hours:
AUD: No data
EUR: No data
GBP: No data
NZD: No data
USD: Prelim UoM Consumer Sentiment
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