Pound (GBP) Wobbles following Retail Sales Figures
The Pound (GBP) fluctuated during Friday’s session as GBP investors reacted to the UK’s latest retail sales.
Although sales contracted by 0.5%, this was slightly better than the forecast decline of 0.7%. An improving market mood also helped to prevent significant losses in the risk-sensitive Pound.
With no UK data out today, domestic issues could drive GBP movement. Amid Brexit worries, the cost-of-living crisis, and growing discontent among public-sector workers, Sterling could face headwinds.
Euro (EUR) Pressured by German Business Pessimism
The Euro (EUR) was also mixed at the end of last week.
A larger-than-forecast drop in German business morale weighed on the single currency. However, the Euro’s negative correlation to a softer US Dollar (USD) helped offset the downside.
European Central Bank (ECB) President Christine Lagarde will speak later this evening, and any policy hints could impact the Euro. Until then, USD movements could affect EUR.
US Dollar (USD) Slips as Market Mood Improves
The US Dollar weakened on Friday as a growing appetite for risk prompted traders to sell the safe-haven ‘Greenback’.
Ironically, signs that the global economy is slowing seem to have cheered investors. With the economy cooling, inflationary pressures should start to ease and central banks may not need to tighten monetary policy so aggressively.
This afternoon, economists expect the latest US durable goods orders to have stalled last month. Could such a result dent USD?
Canadian Dollar (CAD) Rises as Oil Markets Recover
The crude-linked Canadian Dollar (CAD) gained ground on Friday as oil prices rallied following a lacklustre week.
Today, movements in the oil market may continue to exert a strong influence over the ‘Loonie’.
Australian Dollar (AUD) Dips on Economic Fears
The Australian Dollar (AUD) stumbled overnight as worries about Australia’s economy weighed on the currency following a warning from Australian Finance Minister Katy Gallagher.
New Zealand Dollar (NZD) Fails to Rise amid Risk-On Mood
The New Zealand Dollar (NZD) wavered overnight as an upbeat tone among investors failed to lift the risk-sensitive ‘Kiwi’.