Pound (GBP) Rises on Strong Retail Sales Report
The Pound (GBP) firmed on Friday after UK retail sales unexpectedly increased by 1.4%, smashing forecasts of a 0.2% contraction.
However, the surprise rise was driven by a sharp jump in food store sales, suggesting that consumers are staying at home more. This may have capped GBP’s gains.
With no UK data due out today, domestic political and economic news could drive most movement in the Pound.
Euro (EUR) Retreats amid Low Consumer Confidence
The Euro (EUR) softened through Friday’s session as the Eurozone’s latest consumer confidence report weighed on the single currency.
Although the data beat forecasts, consumer morale remained close to a 22-month low as the Russia-Ukraine war continues to cause concerns.
This morning, German business confidence unexpectedly improved, which may help to bolster EUR.
US Dollar (USD) Posts Modest Gains as Investors Buy the Dip
The US Dollar (USD) was initially muted on Friday morning as the currency was still reeling after a rough week’s trade.
However, the ‘Greenback’ managed to regain some ground in the afternoon after attracting some dip-buying.
Later this evening we have a speech from Federal Reserve policymaker Raphael Bostic, which could affect USD.
Canadian Dollar (CAD) Stumbles amid Lack of Data
The Canadian Dollar (CAD) struggled on Friday as a lack of Canadian data left the ‘Loonie’ vulnerable to losses.
Canadian data is thin on the ground again today, so movements in the oil market may drive the commodity-linked currency.
Australian Dollar (AUD) Enjoys Risk-On Trade
The Australian Dollar (AUD) strengthened overnight, boosted by a risk-on market mood. In addition, Australia seems to have avoided a hung parliament following the election weekend, which has provided some stability to the ‘Aussie’.
New Zealand Dollar (NZD) Firms amid Upbeat Market Mood
Likewise, the New Zealand Dollar (NZD) climbed overnight as a bullish market mood boosted the risk-sensitive ‘Kiwi’.