Pound (GBP) Falls as Retail Sales Report Fails to Cheer Investors
The Pound (GBP) hit multi-week lows against some of its peers on Friday, despite an unexpected rise in UK retail sales, as worries about the country’s economy plagued the currency.
Against the backdrop of a looming recession and political uncertainty, continued rail strikes added to a growing sense of unease among GBP investors. The UK is seemingly heading for a period of increased instability.
The Pound could come under pressure again today as workers at Felixstowe – the UK’s biggest container port – go on strike, potentially causing more supply-chain disruption.
Euro (EUR) Subdued as Energy Prices Tick Higher
The Euro (EUR) was muted on Friday as rising energy prices offset an unexpected jump in German PPI.
Soaring energy prices threaten to push the Eurozone into a recession, so as oil and gas creeped up on Friday, the Euro remained under pressure.
Turning to today, a lack of economic data could see the single currency again trade on energy crisis fears.
US Dollar (USD) Firms following Hawkish Fedspeak
The US Dollar (USD) strengthened at the end of last week as hawkish Federal Reserve rhetoric continued to underpin the ‘Greenback’.
Following the relatively cautious meeting minutes from the Federal Open Market Committee (FOMC) earlier in the week, multiple Fed officials spoke out in favour of continued aggressive action. Two officials hinted at another 75-bp rate rise, which lifted USD.
Aside from the Chicago Fed activity index, US data is thin on the ground today. As a result, risk appetite may drive most movement in the US Dollar.
Canadian Dollar (CAD) Buoyed by Retail Sales Data
The Canadian Dollar (CAD) firmed against its weaker peers on Friday thanks to larger-than-forecast retail sales growth in June.
Looking ahead, the crude-linked ‘Loonie’ may trade on oil price dynamics today.
Australian Dollar (AUD) Firms on PBoC Rate Cut
The China-proxy Australian Dollar (AUD) rose in overnight trade after the People’s Bank of China (PBoC) cut its loan prime rates – a move that traders hope will boost the country’s slowing economy.
New Zealand Dollar (NZD) Enjoys AUD Correlation
The New Zealand Dollar (NZD) also ticked higher overnight as the currency’s strong correlation with the ‘Aussie’ gave it a lift.