Euro (EUR) Edges Down as Ukraine-Russia Conflict Concerns Increase
The Euro (EUR) edged lower on Friday, as concerns around the Ukraine-Russia conflict continued to mount.
The US confirmed that they would be supplying Ukraine with their Patriot defence system, which sparked fears of further escalation. These concerns were compounded by rhetoric from Russian President Vladimir Putin, who referred to the conflict as a war for the first time.
With trading conditions thin this week, investors may remain preoccupied with the conflict. Any more negative headlines could weigh on the Euro.
Pound (GBP) Pressured by Continuing Industrial Action
The Pound (GBP) wavered at the end of last week, as thin trading conditions shifted the spotlight towards domestic headlines.
Postal workers and border control officers staged walkouts, prompting further concerns over the future of the UK economy. Similarly, the UK government restated its refusal to negotiate with unions, leading to expectations that strikes would continue into 2023.
Trading conditions are likely to remain thin this week, likely limiting liquidity in the Pound.
US Dollar (USD) Stumbles as Durable Goods Orders Plummet
The US Dollar (USD) weakened at the end of last week, as the US economy showed signs of slowing.
Durable goods orders were shown to have plunged -2.1% from 1.1% in November. Similarly, a fall in the Federal Reserve’s preferred gauge of inflation, the core PCE price index, served to further dampen rate hike bets.
A lack of data in the lull between Christmas and New Year may leave the ‘Greenback’ beholden to market moods. A shift towards risk aversion could boost the safe-haven currency.
Canadian Dollar (CAD) Buoyed by Rising Oil Prices Despite GDP Slip
The Canadian Dollar (CAD) firmed on Friday, as rising oil prices served to counteract a slowdown in October’s GDP data.
Data remains minimal for the ‘Loonie’ this week, meaning that oil price fluctuations may be the core driver of movement for CAD.
Australian Dollar (AUD) Ticks High in Upbeat Trade
The Australian Dollar (AUD) firmed overnight on Tuesday. An improving market mood helping to bolster the appeal of the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Buoyed by Bullish Mood
Likewise, the New Zealand Dollar (NZD) also strengthened in overnight trade, with a bullish market mood reflecting positively on the ‘Kiwi’.