Pound (GBP) Slides following Dire Sales Data
The Pound (GBP) faced heavy selling pressure on Friday after UK retail sales slumped more-than-expected in December.
Sales contracted by 3.7% last month – far worse than the forecast fall of 0.6% – as Omicron hit footfall and inflation dented spending. Economists fear that the sales slump could mean UK GDP also fell in December.
Today the flash PMIs for January are out. Economists expect an uptick in UK service-sector activity. Could this bolster GBP?
Euro (EUR) Firms amid Risk-Off Mood
The Euro (EUR) ticked higher against many of its rivals on Friday, benefitting from a risk-averse market mood and a sharp drop in GBP/EUR.
In addition, Eurozone consumer confidence fell by less than expected in January, dropping from -8.4 to -8.5, rather than -9.
The Eurozone’s flash PMIs are also out today. Despite Germany’s scores beating expectations, the Eurozone’s composite PMI edged lower this month. Will this weigh on EUR?
US Dollar (USD) Muted amid Lack of Data
The US Dollar (USD) was subdued on Friday, wavering sideways overall despite a risk-off market mood providing support for the safe-haven ‘Greenback’.
The lack of direction came as USD investors took a breather amid a lack of data and ahead of a speech from US Secretary of the Treasury Janet Yellen.
The US Markit PMIs could have an impact on the US Dollar today, as could risk appetite. Investors seem jumpy ahead of the Federal Reserve interest rate decision and amid the Ukraine crisis.
Canadian Dollar (CAD) Stumbles on Retail Sales Miss
The Canadian Dollar (CAD) edged lower on Friday after Canadian retail sales missed forecasts, printing at 0.7% rather than 1.2%.
CAD exchange rates could be influenced primarily by movements in the oil market today, amid a lack of notable economic data releases.
Australian Dollar (AUD) Dented by Services PMI Slump
The Australian Dollar (AUD) dropped in overnight trade after Australia’s latest services PMI slumped by ten points, revealing an unexpected contraction in the services sector this month.
New Zealand Dollar (NZD) Trades Flat despite AUD Dip
The New Zealand Dollar (NZD) was fairly rangebound overnight, resisting heavy losses despite its positive correlation to AUD.