Pound (GBP) Slips amid Lack of Data
The Pound (GBP) slipped on Friday afternoon with no clear catalyst for the movement but managed to hold on to its weekly gains.
A lack of UK data left Sterling somewhat adrift, but continued optimism in the UK’s economic recovery and path out of the pandemic limited losses.
Today’s final manufacturing PMI for the UK is unlikely to cause much movement unless it shocks investors. Otherwise, domestic business and Covid news could influence the Pound.
Euro (EUR) Climbs on GDP, Inflation and Unemployment Reports
The Euro (EUR) gained against most of its major rivals on Friday on broadly positive economic data.
The Eurozone’s GDP growth rate, inflation rate and unemployment rate all came in better than expected, supporting the Euro. However, disappointing German data limited the upside.
Turning to today, after German retail sales for June smashed forecasts this morning, the Euro may strengthen.
US Dollar (USD) Bounces Back on Cautious Trade
The US Dollar (USD) bounced off last month’s lows on Friday, as a souring market sentiment increased the appeal of the safe-haven currency.
The upside came amid mixed data from the US, with the PCE price index printing below expectations, while personal spending and income both beat forecasts.
Looking to today’s session, the ‘Greenback’ is down this morning as market mood improves. This afternoon’s ISM manufacturing PMI could bolster the US Dollar, as it’s expected to have risen slightly last month.
Canadian Dollar (CAD) Dented by Contraction in GDP
The Canadian Dollar (CAD) had a mixed session on Friday as the commodity-linked currency was supported by rising oil prices and dented by Canada’s GDP figures, which revealed a 0.3% contraction in May and a revised 0.5% contraction in April.
With no Canadian data out today, oil prices are likely to drive most movement in CAD.
Australian Dollar (AUD) Steady on Unsurprising Data
The Australian Dollar (AUD) was rangebound in overnight trade, as Australia’s final manufacturing PMI came in marginally above the preliminary estimates.
New Zealand Dollar (NZD) Softens on Risk-Off Mood
The New Zealand Dollar (NZD) ticked lower overnight, as a reduced appetite for risk weighed on the ‘Kiwi’.