In another day of light data as the world watches the Olympics instead of the markets, the pound is trading at its lowest levels since the Brexit vote. Investors are bearish on the UK economy and sterling as they anticipate some of the most significant post-Brexit data out of the UK yet this week (namely July’s retail sales and inflation data), which is putting pressure on the pound despite almost no data out this morning. Almost all the post-Brexit UK data up to this point has been negative or has been worse than analysts expected, which is fueling this morning’s bearish sentiment.
The neighboring euro is ticking higher this morning mostly on weakness in the US dollar after last Friday’s worse-than-expected US retail sales data. Investors have also been more supportive of the euro as most of the region’s post-Brexit data has shown the economy to be resilient in the vote’s aftermath.
Elsewhere, the Australian dollar is trading higher on a weaker US dollar and as investors are bullish on July’s new motor vehicle sales out of the country. The Canadian dollar is up too on the weaker greenback. The yen is climbing as safe-haven investors have started switching back to the Japanese currency over the greenback after last Friday’s disappointing US retail sales results.
EURUSD: The euro is trading higher on a weaker US dollar and as investors have seen resilience in the Euro-zone in the post-Brexit era.
GBPUSD: The pound is falling to its lowest levels since Brexit as investors are bearish for this week’s post-Brexit data.
AUDUSD: The Aussie dollar is trading higher as investors bullishly await July’s new motor vehicle sales.
USDCAD: The Canadian dollar is up on a weaker US dollar.