Pound (GBP) Slips on Slump in Retail Sales
The Pound (GBP) lost some ground against its peers on Friday, following a surprise drop in UK retail sales in May.
Domestic sales were expected to have increased by 1.6% but instead contracted by 1.4%, putting pressure on the Pound through Friday’s session.
With no big data releases due from the UK today, coronavirus and Brexit headlines are likely to drive most movement in GBP.
Euro (EUR) Gains on Current Account Surplus
The Euro (EUR) climbed at the end of last week’s session, after the Eurozone’s current account figures showed a €31.4bn surplus in April versus the €18.5bn surplus forecast.
A slight dip in US Treasury yields took some downward pressure off the single currency, as the Euro has been burdened by its negative correlation to a strong US Dollar (USD) over the past week.
European Central Bank (ECB) President Christine Lagarde will be making a speech this afternoon, with EUR investors eager for any hints of a change in the ECB’s monetary policy. Could more dovishness from the ECB dent the Euro today?
US Dollar (USD) Still Fuelled by Fed Decision
The US Dollar (USD) consolidated its gains on Friday, after the ‘Greenback’ soared on the Federal Reserve’s new hawkish outlook earlier in the week.
USD remained dominant in the currency market, despite US Treasury yields slipping as the session went on.
Turning to today, the US Dollar may maintain its upward trajectory if Fed policymaker John Williams reinforces the Fed’s current hawkish bias later this evening.
Canadian Dollar (CAD) Muted despite Rising Oil Prices
The Canadian Dollar (CAD) struggled to capitalise on rising WTI crude prices on Friday, as the currency remained subdued by the strength in the US Dollar.
Looking ahead, could a further jump in oil prices provide support for the commodity-linked ‘Loonie’?
Australian Dollar (AUD) Flat on Retail Sales
The Australian Dollar (AUD) remained muted in overnight trade, as the Australian retail sales preliminary for May came in at 0.1%, below expectations of 0.5%.
New Zealand Dollar (NZD) Rallies despite Strong USD
The New Zealand Dollar (NZD) made some gains overnight, despite continued USD strength, with no clear catalyst for the movement.