Pound Firms as UK Retail Sales Outpace Expectations

Pound (GBP) Strengthens on Stronger Retail Sales Figures

The Pound (GBP) closed last week’s session on a positive note following the publication of the UK’s latest retail sales figures.

October’s figures reported a larger-than-expected rebound in sales growth. Despite this jump coming on the back of a particularly weak September reading, it appeared enough to cheer GBP investors.

Looking ahead, could rumours that the UK government is considering a Swiss-style trade deal with the EU help to buoy the Pound this week?

Euro (EUR) Firms on Lagarde Comments

The Euro (EUR) ticked higher on Friday. The single currency being underpinned by comments from European Central Bank (ECB) President Christine Lagarde in which she reiterated the bank expectations to raise interest rates further.

However the Euro’s upside potential was limited in the face of ongoing concerns over the war in Ukraine and its impact on the Eurozone economy.

A fresh wave of Russian missile strikes on Ukraine over the weekend could act as a headwind for the Euro at the start of this week.

US Dollar (USD) Slides in Bullish Trade

The US Dollar (USD) trended lower at the end of last week, as the appeal of the safe-haven currency was undermined by a prevailing risk-on mood.

Reinforcing the ‘Greenback’s losses was a drop in US Treasury yields, despite some notably hawkish comments from Federal Reserve policymakers earlier in the week.

Turning to the start of this week, the US Dollar looks set to bounce back as a gloomy market mood revives USD demand.

Canadian Dollar (CAD) Softens as Oil Prices Plunge to One-Month Low

The Canadian Dollar (CAD) retreated on Friday. The commodity-linked currency struggled to find support amid a sharp drop in oil prices.

Australian Dollar (AUD) Stumbles on China Covid Concerns

The Australian Dollar (AUD) fell in overnight trade. Investors were wary of the China-proxy ‘Aussie’ as a sharp rise in Chinese Covid cases led Beijing to impose new lockdowns.

New Zealand Dollar (NZD) Softens in Downbeat Trade

The New Zealand Dollar (NZD) also weakened overnight as a gloomy market mood saw investors steer clear of the risk-sensitive currency.

Matthew Andrews

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