US Dollar (USD) Slides on Disappointing Payrolls
The US Dollar (USD) tumbled at the end of last week after the latest US non-farm payrolls report missed forecasts.
June’s figure came in lower than expected and previous readings were revised lower. These signs of slack in the US labour market dented Federal Reserve rate hike bets, sending the ‘Greenback’ spiralling.
Turning to today, Fed policymaker Michael Barr is due to speak this afternoon. Will hawkish hints lift USD?
Pound (GBP) Holds Strong amid BoE Speculation
The Pound (GBP) consolidated its gains at the end of last week, firming against its weaker rivals and holding its ground elsewhere.
Sterling seemed to buck fears of a coming UK recession, with expectations of more Bank of England (BoE) interest rate rises helping GBP rally through the latter part of last week’s session.
Turning to the week ahead, the Pound may be muted today, though a speech this evening by BoE Governor Andrew Bailey could prompt trade. Tomorrow could bring sharper movement, as the UK’s latest labour market report is out.
Euro (EUR) Dented by Poor German Data
The Euro (EUR) stumbled against its stronger peers on Friday as an unexpected contraction in German industrial production dented the common currency.
EUR enjoyed its negative correlation with the US Dollar in the afternoon, however, as a USD selloff helped the Euro recoup losses.
With Eurozone data in short supply today, the single currency could face muted movement.
Canadian Dollar (CAD) Slips as Jobless Rate Jumps
The Canadian Dollar (CAD) fell on Friday as a larger-than-forecast rise in Canada’s unemployment rate dampened the currency’s appeal.
Canadian data is thin on the ground today. Will oil price dynamics drive the crude-linked ‘Loonie’?
Australian Dollar (AUD) Drops following Chinese CPI
The Australian Dollar (AUD) fell sharply overnight after weak Chinese inflation data raised worries about the stuttering recovery in the world’s second-largest economy.
New Zealand Dollar (NZD) Falls amid Global Economic Concerns
Likewise, the risk-sensitive New Zealand Dollar (NZD) declined as global growth concerns rattled markets.