In a light morning for data across all major countries and currencies, the pound continues to trend slightly lower after last week’s Bank of England interest rate cut and as investors anticipated more quantitative easing from the BoE. The central bank’s recently announced moves came after almost all post-Brexit data leading up to last week’s meeting showed some of the worst economic results since the great recession, leading BoE Governor Mark Carney to make the bank’s first cut in seven years and leaving interest rates at record lows.
The neighboring euro is trading mostly flat with pre-Brexit productivity data for Germany meeting expectations , and with a just-released survey of institutional investors showing higher-than-expected confidence in the broader Euro-zone economy.
Across the pond, the US dollar is still climbing with momentum from last week’s strong jobs report for July. The greenback also continues to strengthen against the yen as investors take to the dollar’s perceived safe-haven status, especially as Japan has had to resort to stimulus measures in recent weeks in effort to boost sagging inflation and the overall economy.
Elsewhere, the Australian dollar is trading higher as investors await tonight’s National Australia Bank’s Business Confidence survey and as they have taken to the currency’s relative strength in recent weeks. The Canadian dollar is up slightly too as oil prices climb above $42 per barrel.
EURUSD: The euro is trading mostly flat with little new post-Brexit data.
GBPUSD: The pound is down as investors anticipate more quantitative easing and digest last week’s interest rate cut.
AUDUSD: The Aussie dollar is up on investor optimism for tonight’s business confidence survey.
USDCAD: The Canadian dollar is climbing with oil prices.