Pound (GBP) Falls amid Economic and Brexit Concerns
The Pound (GBP) fell sharply on Friday as UK economic fears weighed on GBP.
In addition, news that the government will publish a bill overriding parts of the Northern Ireland protocol on Monday added to GBP investors’ angst. Economists fear that souring UK-EU relations could damage the UK’s ailing economy.
This morning’s UK GDP results revealed an unexpected contraction of 0.3% in April, which could spark GBP selling. Meanwhile, Brexit headlines may also hurt Sterling.
Euro (EUR) Mixed following ECB Decision
The Euro (EUR) fell against its stronger peers on Friday as Thursday’s European Central Bank (ECB) decision continued to weigh on the single currency.
However, EUR managed to rise against its riskier rivals in the afternoon amid a sharp decline in the market mood.
With no Eurozone data due out today, the single currency may struggle for a clear direction.
US Dollar (USD) Jumps as US CPI Beats Forecasts
The US Dollar (USD) surged higher on Friday after US inflation unexpectedly rose last month.
In May, headline inflation unexpectedly increased from 8.3% to 8.6% – its highest level since December 1981. Core inflation also exceeded forecasts. The hot CPI rekindled Federal Reserve rate hike bets, thereby boosting the US Dollar.
A speech from Fed Vice Chair Lael Brainard could impact USD later this evening. If she strikes a hawkish tone, the ‘Greenback’ could climb.
Canadian Dollar (CAD) Strengthens on Upbeat Jobs Data
The Canadian Dollar (CAD) climbed on Friday following positive employment data. Canada’s unemployment rate surprised markets by declining from 5.2% to 5.1% in May.
In the absence of Canadian data today, oil prices could affect the crude-linked ‘Loonie’.
Australian Dollar (AUD) Subdued as Mood Sours
The Australian Dollar (AUD) wobbled overnight as a downbeat market mood kept the risk-sensitive currency under pressure.
New Zealand Dollar (NZD) Struggles amid Risk-Off Trade
Likewise, the New Zealand Dollar (NZD) was muted in overnight trade. The bearish mood sapped demand for the riskier ‘Kiwi’.