Pound (GBP) Climbs following BoE Remarks
The Pound (GBP) ended the week on a positive note, with GBP climbing following comments from Bank of England (BoE) Chief Economist Huw Pill.
Pill said the bank can’t ‘declare victory’ over inflation just yet, Fuelling speculation that the BoE may end up cutting interest rates later than thought.
The only UK data release today is the Confederation of British Industry’s (CBI) distributive trades survey. Could an improvement in retail trade see Sterling climb even higher?
Euro (EUR) Slips as German GDP Confirms Contraction
The Euro (EUR) softened on Friday after Germany’s third-quarter GDP figure confirmed that the Eurozone’s largest economy is on the brink of a recession.
Meanwhile, Germany’s business climate indicator for November missed forecasts, although it did show an improvement.
Turning to today, European Central Bank (ECB) President Christine Lagarde is due to speak. Any dovish comments could undermine the common currency.
US Dollar (USD) Declines as Risk Appetite Improves
The US Dollar (USD) fell during Friday’s session as an increasingly upbeat market mood sapped demand for the safe-haven currency.
Later in the session, an unexpected improvement in the US service sector PMI failed to boost USD exchange rates. Instead, the data seemed to contribute to the cheery tone among investors.
Risk appetite could continue to drive the US Dollar today amid a lack of data. Will positive risk flows extend the USD selling bias?
Canadian Dollar (CAD) Climbs following Strong Retail Sales
The Canadian Dollar (CAD) rallied on Friday after a surprise rise in Canadian retail sales. In September, sales grew by 0.6%, rather than stalling as expected.
Canadian data is in short supply today. As a result, oil prices could drive the crude-linked ‘Loonie’. This could lead the ‘Loonie’ to weaken amid a drop in prices.
Australian Dollar (AUD) Fluctuates amid Mixed Risk Sentiment
The Australian Dollar (AUD) initially stumbled overnight amid a downbeat market mood, before swiftly recovering ahead of the European session as sentiment recovered.
New Zealand Dollar (NZD) Rocked by Volatile Market Mood
Movement in the New Zealand Dollar (NZD) mirrored that of the ‘Aussie’ during the Asian session amid fluctuating market risk appetite.