Pound Clipped by Sharp Contraction in UK Retail Sales

Pound (GBP) Stumbles as Retail Sales Slump

The Pound (GBP) initially faced selling pressure on Friday after UK retail sales slumped a whopping 1.2% in July, far worse than forecasts of a 0.5% contraction.

However, expectations of more interest rate rises from the Bank of England (BoE) kept the Pound underpinned, limiting GBP’s losses.

Looking ahead, a lack of UK economic data today could leave Sterling to trade without a clear direction.

Euro (EUR) Muted by USD Correlation

The Euro (EUR) struggled on Friday as its negative correlation with a rising US Dollar (USD) put pressure on the single currency.

The Eurozone’s final consumer price index failed to provide much impetus, as the inflation figures printed in line with preliminary estimates.

Eurozone data is also in short supply today, so we may see the single currency trade in a wide range against its peers.

US Dollar (USD) Edges Higher amid Gloomy Mood

A souring market mood saw the safe-haven US Dollar trend broadly higher during Friday’s session.

The ‘Greenback’ found its gains capped, however, as a lack of data and thin trading conditions limited the currency’s movements.

Risk appetite could be the defining factor for the US Dollar today. Could a recovering mood see USD slip?

Canadian Dollar (CAD) Wavers amid Oil Volatility

The Canadian Dollar (CAD) suffered choppy trade at the end of last week, with the crude-linked ‘Loonie’ affected by volatility in the price of oil.

Turning to today, oil price movements could continue to drive CAD. Will a rise in oil help the Canadian Dollar climb?

Australian Dollar (AUD) Ticks Lower amid Cautious Trade

The risk-sensitive Australian Dollar (AUD) softened slightly as the week began, as the overnight session was characterised by a cautious mood.

New Zealand Dollar (NZD) Weakens as Trade Deficit Widens

The New Zealand Dollar (NZD) fell last night after the latest data revealed a larger-than-forecast widening of New Zealand’s trade deficit.

Samuel Birnie

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