Pound (GBP) Wavers as Market Mood Shifts
Amid a lack of UK economic data, the Pound (GBP) traded in relation to risk sentiment on Friday, with the shifting market mood causing Sterling to waver.
GBP initially dipped as the risk-on rally in European markets faded, but managed to regain some of its losses as the market mood improved in the afternoon.
With UK data still sparse today, the latest news from Ukraine could drive most GBP movement.
Euro (EUR) Dented by Record Trade Deficit
The Euro (EUR) fell during Friday’s session as the Eurozone printed a record trade deficit of €27.2 due to the surging costs of energy imports.
The single currency was able to recoup some of its losses in the afternoon thanks to an upbeat tilt in market mood. However, it remained down on the day’s trade.
This morning, European Central Bank (ECB) President Christine Lagarde dismissed fears of stagflation, giving EUR a slight boost. As the session unfolds, the Russia-Ukraine war will be in the spotlight.
US Dollar (USD) Softens as Risk Appetite Returns
The US Dollar (USD) wavered lower against most of its peers on Friday as a risk-on mood returned to markets, thereby dampening the appeal of the safe-haven ‘Greenback’.
Hawkish comments from some Federal Reserve officials helped limit USD’s losses. Policymakers Christopher Waller and James Bullard both voiced their support for a faster pace of rate rises this year.
Two more Fed officials, including the bank’s chair, Jerome Powell, are due to speak today. Could their comments cause fresh movement?
Canadian Dollar (CAD) Slips despite Strong Sales Data
The Canadian Dollar (CAD) struggled on Friday, failing to gain ground against its stronger peers despite better-than-expected Canadian retail sales growth. A downtick in crude prices seems to have undermined the commodity-linked ‘Loonie’.
With no Canadian data due out today, oil prices may continue to drive most movement in CAD.
Australian Dollar (AUD) Retreats from Highs as Investors Grow Cautious
The Australian Dollar (AUD) edged lower overnight, retreating from recent highs, as a slightly more cautious tilt in the market mood weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) See-Saws on Mixed Trade Data
The New Zealand Dollar (NZD) fluctuated in overnight trade amid the lukewarm market mood and mixed trade data. Last month, exports improved for New Zealand and the country’s trade balance beat forecasts. However, it remains in a deficit.