Pound (GBP) Muted on Mixed Data
The Pound (GBP) had a mixed day on Friday, gaining against its riskier rivals but losing ground elsewhere, following a surprise slump in retail sales and fairly positive PMIs.
While both the manufacturing and services PMIs unexpectedly increased, this was offset by news that factory output slowed to near stagnation.
Looking ahead, a speech from Silvana Tenreyro, a rate-setter for the Bank of England (BoE), could influence GBP exchange rates today.
Euro (EUR) Trends Higher despite Mixed Data
The Euro (EUR) firmed against most of its peers on Friday, despite mixed PMIs, with manufacturing beating expectations and services falling short.
The single currency benefitted from a risk-off market mood, which weighed on the riskier currencies and allowed the Euro to strengthen.
The Ifo business climate indicator for Germany could dent the Euro this morning, as it’s expected to fall for a fourth consecutive month.
US Dollar (USD) Strengthens as Market Mood Sours
The US Dollar (USD) climbed through Friday’s session, as a decrease in risk appetite supported the safe-haven ‘Greenback’.
Broadly positive Markit PMI figures also boosted the US Dollar. Although manufacturing fell slightly, services beat forecasts by unexpectedly rising from 55.4 to 58.
With a lack of major market-moving US data out today, risk appetite could be the primary driver of USD exchange rates.
Canadian Dollar (CAD) Slips as Oil Prices Fall
The Canadian Dollar (CAD) stumbled at the end of last week, despite slightly better-than-expected retail sales results, due to a dip in the price of oil.
Oil prices will likely continue to influence the ‘Loonie’ today, while CAD investors will also be looking ahead to the Bank of Canada (BoC) policy meeting on Wednesday.
Australian Dollar (AUD) Firms amid Risk-On Trade
The Australian Dollar (AUD) ticked higher overnight, as an improving market mood boosted the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Gains on Upbeat Sentiment
The New Zealand Dollar (NZD) also trended higher in overnight trade thanks to the bullish market mood.