US Dollar (USD) Recovers after Shock Unemployment Spike
The US Dollar (USD) traded in a wide range at the end of last week. USD exchange rates initially faltered in response to weak payroll figures and a rise in unemployment.
However, the ‘Greenback’ was quick to rebound, as it was supported by stronger-than-expected ISM PMI data and Federal Reserve interest rate expectations.
Movement in the US Dollar is likely to be limited today as US markets are closed in observation of Labour Day.
Pound (GBP) Wavers amid Shifting Risk Appetite
Last Friday, the Pound (GBP) fluctuated as levels of risk appetite shifted over the course of the session.
With markets turning cautious as the day continued, the increasingly risk-sensitive Sterling ended the day on the defensive.
With the light data calendar continuing today, Sterling may lack clear direction at the start of the week.
Euro (EUR) Volatile amid Light Data Calendar
The Euro (EUR) endured volatile trade at the end of last week, as a lack of macroeconomic releases left it vulnerable.
Furthermore, uncertainty over the European Central Bank’s (ECB) next steps prevented EUR from gaining ground.
This morning, the German balance of trade data showed a shock decrease in exports from the bloc’s largest economy. This could bring volatility, ahead of a speech from ECB President Christine Lagarde this afternoon.
Canadian Dollar (CAD) Dented by Stalling Economy
Disappointing GDP growth data dented the Canadian Dollar (CAD) on Friday. The Canadian economy was found to have stalled in the second quarter, missing forecasts of a 0.3% expansion.
Oil price dynamics may be the main driver of movement for the ‘Loonie’ today, owing to a lack of other impetus.
Australian Dollar (AUD) Boosted by Upbeat Market Mood
The risk-sensitive Australian Dollar (AUD) rose in overnight trade, amid a shift toward risk-on trade.
New Zealand Dollar (NZD) Lifted by Risk-On Trade
The New Zealand Dollar (NZD) firmed overnight, as optimistic trade benefitted the ‘Kiwi’.