Pound (GBP) Stumbles as UK Retail Slumps
The Pound (GBP) weakened last Friday, following the release of December’s retail sales data which fell far below forecasts.
Originally expected to print at 0.5%, sales data for December showed a decline of 1%. Analysts highlighted that inflationary pressures and rising interest rates curbed consumer spending.
Data is thin on the ground today, which may leave Sterling vulnerable to domestic pressures. Could concerns over industrial action weaken GBP?
Euro (EUR) Succumbs to Risk-On Trade
The Euro (EUR) began Friday on solid ground, before a shift in market sentiment saw the single currency begin to weaken.
Adding further pressure may have been fears of an escalation in the Ukraine-Russian conflict, as a decision for supplying tanks to Ukraine nears.
European Central Bank (ECB) President Christine Lagarde is scheduled to speak this evening. A hawkish outlook may lift the Euro.
US Dollar (USD) Seesaws amid Upbeat Market Mood
The US Dollar (USD) traded in a wide range at the end of last week as a recovery in US Treasury bond yields was countered by risk-on trade.
Similarly, ephemeral rate hike bets kept the ‘Greenback’ on its toes during Friday’s session. Investors seemed unable to settle on high rate hikes from the Federal Reserve, or smaller but longer ones, adding further turbulence.
Thin liquidity means the US Dollar may be vulnerable to domestic headlines. Will the battle over the US debt ceiling dent USD rates?
Canadian Dollar (CAD) Mixed amid Bond Yield Rally, Hotter-than-Expected Retail
The Canadian Dollar (CAD) saw mixed trade at then end of last week as a rallying government bond yields coalesced with hotter-than-expected retail sales in December. However, fluctuating oil prices and a wobbling US Dollar capped these gains.
With thin trade today, the oil-linked ‘Loonie’ may trade in relation to crude prices. An uptick could lent CAD support.
Australian Dollar (AUD) Ticks Upward on Risk-On Trade
The risk-sensitive Australian Dollar (AUD) opens this week on strong foot. The risk sensitive currency being underpinned by an optimistic market mood.
New Zealand Dollar (NZD) Firms on Optimistic Trade
The New Zealand Dollar (NZD) trended higher at the start of this week’s session, with the riskier ‘Kiwi’ lifted by an upbeat market mood.