Pound (GBP) Falls as UK Sales Contract
The Pound (GBP) fell against many of its rivals on Friday after UK retail sales unexpectedly contracted by 0.3% in October.
In addition, September’s figure was revised from -0.9% to -1.1%. The poor data raised fresh fears of a winter recession, pulling Sterling lower.
Turning to today, the Pound may be muted amid a lack of UK data. Later this evening, Bank of England (BoE) Governor Andrew Bailey is due to speak. Could dovish comments dent GBP?
Euro (EUR) Undermined by Cooling Inflation
The Euro (EUR) initially faced pressure on Friday as confirmation of a sharp slowdown in Eurozone inflation reinforced expectations that the European Central Bank’s (ECB) interest rate hiking cycle is over.
However, the single currency’s strong negative trading relationship with the US Dollar (USD) helped EUR rise against its weaker peers over the afternoon.
Earlier this morning, new data showed a cooldown in German producer price inflation. This could add to the decline in ECB rate hike bets, thereby weighing on EUR.
US Dollar (USD) Slides amid Upbeat Mood
The safe-haven US Dollar slumped at the end of last week’s session as a risk-on market mood sapped USD demand.
Furthermore, a continued pullback in Federal Reserve interest rate expectations also dragged the ‘Greenback’ lower.
Looking ahead, US economic data is in short supply today. As a result, risk appetite could drive USD movement. If the tone remains bullish, the US Dollar could face further losses.
Canadian Dollar (CAD) Struggles despite Rising Oil Prices
The Canadian Dollar (CAD) was mixed on Friday. While an uptick in oil prices supported the crude-linked ‘Loonie’, the currency’s positive correlation with USD stifled its upside.
Shifting focus to today’s session, the Canadian Dollar could climb higher if oil prices continue to rise.
Australian Dollar (AUD) Buoyed amid Risk-On Mood
The Australian Dollar (AUD) firmed during overnight trade as a cheery market mood boosted the risk-sensitive currency.
New Zealand Dollar (NZD) Rises as Sentiment Improves
Likewise, the New Zealand Dollar (NZD) moved higher last night as upbeat investors opted for the risky ‘Kiwi’.