Despite another day of light data, the pound is trading at its lowest levels in nearly 30 years after June’s trade balance data for the UK showed worse-than-expected results. Britain’s non-EU trade balance data — which measures trade between the UK and countries outside Europe — came in especially below expectations, also putting pressure on the currency. While investors are waiting for more post-Brexit data to better gauge the UK’s economic health, these poor trading results measured in the weeks leading up to the EU vote are taking center stage amidst negative sentiment and a dry spell for newer data.
The euro is ticking slightly lower as Germany’s trade balance data for June came in just below analyst expectations. Tomorrow will bring more post-Brexit data with inflation and unemployment data out of Portugal. A positive report out of the small country could signal resilience among smaller European economies following the Brexit vote, and could help strengthen the euro.
Elsewhere, the Canadian dollar is dipping slightly on lower oil prices while the Australian dollar is trading a touch higher as investors await consumer inflation forecasts to be released later today. The Japanese yen is trading lower as investors continue to favor the US dollar, which has been strengthening after a string of positive economic data in recent weeks.
EURUSD: The euro is slightly down on worse-than-expected German trade balance data.
GBPUSD: The pound is down with poor trade balance results from June.
AUDUSD: The Aussie dollar is up slightly as investors await tonight’s consumer inflation forecasts.
USDCAD: The Canadian dollar is trading lower as oil prices tick lower.