US Dollar (USD) Rises on Risk-Averse Trade
The safe-haven US Dollar (USD) strengthened on Monday, amid a prevailing risk-off mood.
Anxieties around China’s economic recovered continued to swell on Monday, following renewed property sector concerns. This in turn prompted risk-averse trade, allowing USD to strengthen despite a lack of data.
This afternoon brings the latest retail sales data for July, which could boost the ‘Greenback’ if they rose as forecast.
Pound (GBP) Listless Ahead of Labour Data
The Pound (GBP) traded listlessly on Monday, amid the absence of any notable UK economic releases.
Furthermore, as an increasingly risk-sensitive currency, the tepid market mood further limited Sterling’s upside potential.
Euro (EUR) Unwound by USD Strength
Due to their negative correlation, the Euro (EUR) weakened yesterday due to a strengthening US Dollar.
Some cushioning was brought about by risk-averse trade, but this did little to keep the single currency afloat.
The latest German ZEW economic sentiment index is scheduled to print later this morning. Will another deterioration in sentiment pull the Euro lower?
Canadian Dollar (CAD) Undermined by Oil Price Weakened
The crude-linked Canadian Dollar (CAD) saw muted trade yesterday, as oil prices weakened sharply.
Later, July’s consumer price index is set for release, with economists anticipating inflation will have ticked up to 3%, potentially boosting CAD.
Australian Dollar (AUD) Swings amid Soft Wage Growth Data
The Australian Dollar (AUD) seesawed overnight, as softer-than-expected wage growth and dovish minutes from the Reserve Bank of Australia (RBA) capped AUD demand.
New Zealand Dollar (NZD) Undermined by Weak Chinese Data
The New Zealand Dollar (NZD) fell overnight on Monday as markets were spooked by weaker-than-expected industrial production and retail sales figures from China.