Pound (GBP) Stumbles on Disappointing Retail Sales Figures
The Pound (GBP) closed last week’s session on the back foot, in the wake of a lacklustre retail sales reading.
August’s figures revealed a shock contraction in sales growth, which raised additional questions over the resilience of the UK’s economy in the second half of 2021.
Turning to this week’s session, GBP investors will be focused on the Bank of England’s (BoE) forward guidance as it concludes its latest interest rate decision. Will a hawkish outlook help to bolster the Pound?
Euro (EUR) Muted as ECB Casts Doubts on Inflation
The Euro (EUR) struggled to find any strong directional bias on Friday, following the release of the Eurozone’s consumer price index.
While August’s finalised figures confirmed inflation in the bloc climbed to a decade high, the European Central Bank’s Martins Kazaks expressed doubt about inflation holding about its 2% target in the medium-term.
Coming up this week we have the publication of the Eurozone’s latest PMI figures, which could provide some support to the Euro if they reveal that activity in the bloc’s private sector remained robust this month.
US Dollar (USD) Boosted by Rising Treasury Yields
The US Dollar (USD) firmed at the end of last week’s session, as the appeal of the ‘Greenback’ was bolstered in response to rising US Treasury yields.
However, the upside in USD exchange rates was tempered somewhat by the publication of the University of Michigan’s consumer sentiment, which revealed that US consumer morale only slightly ticked up from the decade low struck in August.
Looking ahead, the spotlight this week will undoubtedly be on the Federal Reserve as it concludes its latest policy meeting, with USD investors eager to see if the Fed offers more clarity regarding its tapering plans.
Canadian Dollar (CAD) Dips as Oil Prices Weaken
The Canadian Dollar (CAD) ticked lower on Wednesday, with the commodity-linked currency being undermined by falling oil prices.
Australian Dollar (AUD) Stumbles amid Risk-Off Mood
The Australian Dollar (AUD) has been placed on the defensive at the start of this week’s session, with the appeal of the ‘Aussie’ being undermined by a prevailing risk-off mood.
New Zealand Dollar (NZD) Weakens in Bearish Trade
The New Zealand Dollar (NZD) also came under pressure in overnight trade as nervous investors shun the risk-sensitive ‘Kiwi’.