Euro (EUR) Slides as European Bank Stocks Tumble
A fresh selloff in the European banking sector dragged the Euro (EUR) lower on Friday.
Just as calm had appeared to return to markets, a fresh selloff ensued. Germany’s largest lender – Deutsche Bank – suffered some of the steepest losses.
Lingering concerns may be keeping the Euro on the back foot this morning as it struggles to gain ground despite a surprise rise in German business confidence. Later on, two European Central Bank (ECB) speeches could affect the single currency.
Pound (GBP) Directionless amid Mixed Data
The Pound (GBP) struggled to find a clear direction at the end of the week following mixed British economic data.
UK retail sales smashed forecasts, printing at 1.2% rather than the expected 0.2%. However, sales volumes fell in the three months to February. Meanwhile, the UK’s PMI reports both dropped more than forecast, although the British services sector remains in expansionary territory.
Turning to today, the Confederation of British Industry’s (CBI) distributive trades survey could impact the Pound, with a forecast downturn potentially denting GBP.
US Dollar (USD) Rallies amid Risk-Off Mood
The US Dollar (USD) strengthened at the end of last week’s trade as the renewed turmoil in European and US financial markets boosted the safe-haven ‘Greenback’.
USD’s gains petered out in the second half of Friday’s session, however, following an unexpected contraction in US durable goods orders.
A speech from the Federal Reserve’s Philip Jefferson could impact the US Dollar tonight, with any hawkish remarks likely supporting USD. Until then, risk appetite could drive most movement.
Canadian Dollar (CAD) Mixed as USD Rises and Oil Falls
The Canadian Dollar (CAD) fluctuated on Friday. CAD enjoyed its positive correlation with USD, but a sharp decline in oil prices weighed on the commodity-linked currency.
In the absence of any notable Canadian data today, crude prices may determine the Canadian Dollar’s movements.
Australian Dollar (AUD) Lacks Support amid Risk-Off Sentiment
The Australian Dollar (AUD) was muted during overnight trade as a cautious market mood kept a firm lid on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Subdued amid Wary Market Mood
Likewise, the New Zealand Dollar (NZD) flatlined last night, with anxious investors unwilling to bet on the riskier ‘Kiwi’.