Pound (GBP) Wavers amid Lack of Data
The Pound (GBP) fluctuated on Friday, softening against many of its rivals overall, as a lack of data left Sterling vulnerable to movements in its paired currencies.
A slight weaking of optimism in the UK may also have impacted GBP, with rising Covid cases and the previous day’s mixed data weighing on the Pound.
With data still thin on the ground today, we could see the Pound trade in a narrow range.
Euro (EUR) Firms on Upbeat Outlook
The Euro (EUR) strengthened against most of its counterparts on Friday, buoyed by the Eurozone’s upbeat outlook and a dip in the US Dollar (USD).
The European stock market enjoyed its fourth week of gains and the Eurozone’s trade surplus rose to €18.1bn. Meanwhile, the Euro was also supported by the EU’s accelerating vaccination programme, which could overtake the UK in the coming weeks.
But with a lack of European data out today, will the single currency be able to hold on to its gains?
US Dollar (USD) Slides as Consumer Confidence Slumps
The US Dollar tumbled at the end of Friday’s session after the University of Michigan consumer sentiment index dropped well below expectations.
The index dropped from 81.2 to 70.2 this month, its worst level since December 2011, and shows that sentiment is down across different demographics and all aspects of the economy.
With no major market-moving data out today, risk sentiment could play an influential role in USD exchange rates.
Canadian Dollar (CAD) Dips on Falling Oil Prices
The Canadian Dollar (CAD) slipped through Friday’s session, with the commodity-linked currency dragged down by falling oil prices.
Looking ahead, domestic politics could influence CAD dynamics going forward, following Prime Minister Justin Trudeau’s call for a snap election over the weekend.
Australian Dollar (AUD) Weakens as Covid Situation Worsens
The Australian Dollar (AUD) tumbled in overnight trade, after disappointing data from China and Australia’s ongoing Covid situation dented the appeal of the ‘Aussie’.
New Zealand Dollar (NZD) Dented by Chinese Data Misses
The New Zealand Dollar (NZD) also trended lower overnight, after China’s industrial production, retail sales and unemployment rate all missed forecasts.