Pound (GBP) Trimmed by Profit Taking
After soaring on Thursday, the Pound (GBP) found itself under some modest pressure at the end of the week as it was undermined by a bout of profit-taking.
Further limiting the appeal of Sterling were some lingering Brexit jitters as the EU warned trade negotiations will not be easy.
Looking ahead, it’s set to be a busy week for GBP investors, with a slew of UK economic data on the agenda.
Up first will be the UK’s latest employment report, which could drag on the Pound on the expectation that wage growth will have slowed again in December.
Euro (EUR) Refreshes Lows on Disappointing German GDP
The Euro (EUR) fell to its lowest levels since May 2017 on Friday in response to Germany’s latest GDP estimate.
Destatis reported that Germany’s economy stagnated in the last quarter of 2019, missing forecasts for a modest 0.1% expansion.
The weak end to 2019 stoked fears Germany is at a serious risk of recession at the start of 2020, as the disruption from the coronavirus puts further pressure on the Eurozone’s largest economy.
Coming up this week, the Euro may remain biased towards the downside as economists forecast economic sentiment in Germany will have weakened in February.
US Dollar (USD) Stable as US Retail Sales Rise in Line with Expectations
The US Dollar (USD) remained steady at the end of last week with the ‘Greenback’ enjoying broad support as domestic retail sales printed in line with expectations in January.
Alongside ongoing concerns over the severity of the coronavirus outbreak in China, this ensured the US Dollar remained well positioned at the end of the week.
In focus for USD investors this week will be the minutes from the Federal Reserve’s latest policy meeting as they hope for more insight into the bank’s policy outlook for 2020.
Canadian Dollar (CAD) Rallies as Oil Prices Jump
The Canadian Dollar (CAD) trended higher on Friday, with demand for the oil-sensitive ‘Loonie’ rising in response to a jump in crude prices after Russian oil firms reportedly backed an extension of production cuts in coordination with the Organization of the Petroleum Exporting Countries (OPEC).
Australian Dollar (AUD) Weakens as Commodity Prices Slide
The Australian Dollar (AUD) ticked lower at the end of last week as the commodity-linked ‘Aussie’ was dented by a continued drop in copper prices.
New Zealand Dollar (NZD) Slips in Risk-Off Trade
The New Zealand Dollar (NZD) also drifted lower on Friday, with the ongoing concerns over the coronavirus outbreak in China weighing on the risk-sensitive ‘Kiwi’.