Pound (GBP) Buoyed by Strong UK GDP
The Pound (GBP) had mixed success in Friday’s trade, gaining against its weaker peers thanks some strong GDP data. In November, UK GDP grew by 0.9% month-on-month, bringing UK GDP 0.7% above pre-pandemic levels.
However, a gloomy market mood capped GBP’s gains and saw it slip against some safe-haven currencies.
In the absence of UK data today, domestic UK news could drive GBP exchange rates. Brexit talks are set to intensify this week, with any positive developments potentially supporting the Pound. Meanwhile, ongoing political uncertainty over Boris Johnson’s future could weigh on Sterling.
Euro (EUR) Dented by Poor Data
The Euro (EUR) was also mixed at the end of last week, as a Eurozone trade deficit and weak German GDP data weighed on the single currency.
However, a downturn in global risk appetite boosted the safe-haven Euro against its riskier peers.
A lack of notable Eurozone data today could leave EUR without a clear direction.
US Dollar (USD) Recovers as Markets Turn Cautious
The US Dollar (USD) strengthened on Friday’s session as a souring market mood boosted demand for the safe-haven ‘Greenback’.
A slump in US retail sales did little to affect USD’s upside, with the data perhaps adding to the downbeat trading sentiment.
With no US data due out today, the ‘Greenback’ could be driven by risk sentiment.
Canadian Dollar (CAD) Slips as Oil Prices Waver
The commodity-linked Canadian Dollar (CAD) softened on Friday amid some choppy trade in the oil market. Stronger USD exchange rates may also have weighed on the ‘Loonie’.
Looking ahead, this afternoon’s business outlook survey from the Bank of Canada (BoC) could impact the Canadian Dollar.
Australian Dollar (AUD) Slips on Chinese Data
The Australian Dollar (AUD) edged lower against most of its peers overnight amid some mixed Chinese data and a shifting market mood.
New Zealand Dollar (NZD) Rebounds as Risk Appetite Returns
The New Zealand Dollar (NZD) also initially softened in overnight trade, but the risk-sensitive ‘Kiwi’ then manged to rebound as the market mood improved.