Pound (GBP) Pressured by Slump in Retail Sales
The Pound (GBP) closed last week on a sour note, following the publication of the UK’s latest retail sales figures.
September’s figures reported a whopping 0.9% contraction in sales growth, reviving UK recession fears and sapping Sterling sentiment.
In the absence of any notable UK data, the Pound may be left directionless at the start of this week’s session.
Euro (EUR) Bolstered by Risk-Off Demand
The Euro (EUR) strengthened on Friday as fears of an escalation of the conflict between Israel and Hamas saw investors favour safe-haven assets.
However, the upside in the single currency was tempered slightly by Germany’s latest producer price index as it reported an unexpected fall in prices last month.
Coming up later this week is the European Central Bank’s (ECB) latest interest rate decision. Will caution ahead of the meeting limit movement in the Euro in the first half of this week?
US Dollar (USD) Fluctuates as US Treasury Yields Retreat
The US Dollar (USD) was pulled in two directions at the end of last week. USD exchange rates initially firmed as growing geopolitical uncertainty bolstered safe-haven demand.
However, the ‘Greenback’ struggled to maintain these gains amid falling US Treasury yields.
The US Dollar may strengthen at the start of this week as a lull in data leaves the situation in the Middle East to continue to weigh on market sentiment.
Canadian Dollar (CAD) Buoyed by Rising Oil Prices
The Canadian Dollar (CAD) firmed on Friday as the appeal of the oil-sensitive currency was bolstered by an uptick in crude prices.
Looking ahead, movement in the ‘Loonie’ is likely to remain tied to oil price dynamics at the start of this week, potentially allowing CAD exchange rates to strengthen if prices continue to rise.
Australian Dollar (AUD) Slips in Bearish Trade
The Australian Dollar (AUD) is off to a poor start this week as the ongoing geopolitical uncertainty leaves investors wary of more risk-sensitive assets.
New Zealand Dollar (NZD) Undermined amid Risk-Off Mood
The New Zealand Dollar (NZD) also fell victim to souring market sentiment at the start of today’s session, with investors shying away from the ‘Kiwi’ in favour of safe-haven currencies.