US Dollar (USD) Slips amid Falling Consumer Morale
The safe-haven US Dollar (USD) initially rose at the start of Friday’s European session amid a souring market mood.
However, an unexpected drop in US consumer confidence in the afternoon saw USD pare its gains.
Looking ahead, a lack of US economic data today could leave the ‘Greenback’ to trade primarily in relation to risk appetite.
Pound (GBP) Volatile amid Lack of Data
The Pound (GBP) fluctuated on Friday amid a lack of UK economic data and ongoing volatility in global financial markets.
An anxious mood among investors saw Sterling manage to regain ground against its riskier peers.
Turning to today, Sterling may be muted as investors await Wednesday’s inflation rate reading and Thursday’s Bank of England (BoE) policy decision.
Euro (EUR) Mixed despite Hawkish ECB Comments
The Euro (EUR) also faced mixed movement at the end of last week’s session.
Hawkish comments from a number of European Central Bank (ECB) officials underpinned EUR. However, renewed concern about Europe’s banking sector capped the upside.
ECB President Christine Lagarde is due to speak this afternoon. Any hints about the future path of monetary policy, or the Eurozone’s financial stability, could impact EUR exchange rates.
Canadian Dollar (CAD) Slumps amid Oil Selloff
The Canadian Dollar (CAD) tumbled at the end of last week’s trade. A steep drop in oil prices dragged the crude-linked currency lower.
In the absence of any notable Canadian data today, movements in the oil market could drive CAD exchange rates.
Australian Dollar (AUD) Falls as Mood Clouds Over
The Australian Dollar (AUD) initially rose as overnight trade began but the riskier ‘Aussie’ saw its gains erased as sentiment soured.
New Zealand Dollar (NZD) Stumbles amid Risk Aversion
Likewise, the risk-sensitive New Zealand Dollar (NZD) firmed at the start of the week’s session before heading lower amid the darkening market mood.