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With little UK data releases on the horizon, the pound remains at the volatility of foreign data releases.
There was little to report on the currency market yesterday due to a lack of high-level economic data. The pound rose 0.2% against the euro towards the end of the day and has continued to climb this morning.
Pre-election polls in the UK showed that Labour and Conservatives are on track to register their lowest combined vote share in a century. It seems both parties have lost support since prime minister Rishi Sunak’s election announcement on May 22.
The S&P CoreLogic Case-Shiller 20-city home price index in the US rose to 7.2% year-on-year in April, easing from a surge of 7.5% in March, but above forecasts of 6.9%.
Also in the US, the conference board index revealed consumer morale dropped in June, falling to 100.4 from 101.3. Despite the fall, the result was stronger than forecasts of 99. Taking the blame for the decline was the deteriorating short-term outlook for income and conditions in the jobs market.
In Canada, the annual inflation rate rose unexpectedly to 2.9% in May, from April’s 2.7% – a low previously unseen since 2021. This was higher than forecasts of 2.6% and was largely down to services costs, namely prices for cellular services, travel tours, rent and air transportation.
Microsoft made front-page news yesterday after the European Commission accused it of illegally linking its chat and video app, Teams, with Office 365. These allegations are the worst the tech giant has faced since 2013 when it was hit with a €561mn fine for failing to promote its Internet Explorer web browser rivals.
Citizens Advice revealed yesterday that EDF, Utilita and British Gas were the worst energy suppliers for customer service. Research shows standards in the energy sector have slipped.
The French consumer confidence indicator fell slightly to 89 in June, lower than 90 in March and higher than forecasts of 88. Both readings remain below the long-term average of 100.
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GBP: Pound takes a backseat
The economic calendar remains quiet this week for UK data, with no high-level data releases until next week’s General Election. In the meantime, the pound remains at the mercy of foreign data.
GBP/USD past year:
EUR: German consumer morale falls
This morning, we heard the GfK consumer climate indicator for Germany fell to -21.8 in July from -20.9 in June, underperforming against market expectations of -18.9. This marks the first decline in consumer morale in five months.
GBP/EUR past year:
USD: Australian dollar soars
This morning, the Australian dollar soared to a two-week high against the US dollar after better-than-expected domestic inflation data bolstered bets that the Reserve Bank of Australia could raise interest rates again.
USD/EUR past year:
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