Euro (EUR) Rises amid Risk-Off Mood
The Euro (EUR) firmed on Friday as a cautious market mood saw traders favour the safer single currency over its riskier peers.
Better-than-forecast Eurozone trade data and the Euro’s negative correlation to a sluggish US Dollar (USD) also aided EUR exchange rates.
In the absence of any noteworthy Eurozone data today, risk appetite could drive the Euro once again. Could a downbeat mood support EUR?
Pound (GBP) Mixed amid Lack of Data
The Pound (GBP) ended last week trading without a clear direction amid a lack of UK economic data.
Persistent Bank of England (BoE) rate hike bets lent Sterling some support, although this wasn’t enough to prevent the Pound falling against its stronger peers.
GBP could see mixed movement again as this week’s session begins, as UK data remains thin on the ground.
US Dollar (USD) Ends the Week Bruised
The US Dollar was left licking its wounds on Friday, crawling up from multi-month lows as a slight souring of market sentiment brought safe-haven flows for the ‘Greenback’.
However, USD’s upside was severely limited by the ongoing pullback in Federal Reserve interest rate rise bets. The US Dollar ended the week sharply lower than it was at the beginning of trade.
Turning to today, risk appetite could continue to drive the US Dollar. Will a gloomy mood see USD regain more ground?
Canadian Dollar (CAD) Slumps in Tandem with Oil
The Canadian Dollar (CAD) fell sharply on Friday, as the ‘Loonie’ traded true to its positive correlation with oil. Crude prices slumped amid a combination of profit-taking and demand concerns.
With market-moving data lacking today, oil prices could remain the primary factor influencing CAD. If crude continues to fall, the ‘Loonie’ could weaken further.
Australian Dollar (AUD) Falls on Weak Chinese GDP
The Australian Dollar (AUD) headed lower last night after a sharp slowdown in China’s quarter-on-quarter GDP growth rate dampened AUD’s appeal, due to the currency’s status as a proxy for the Chinese economy.
New Zealand Dollar (NZD) Falls amid Risk-Off Mood
The risk-sensitive New Zealand Dollar (NZD) also softened last night as the downbeat Chinese GDP data triggered bearish trade.