Pound (GBP) Fluctuates amid Mixed Data
Trade in the Pound (GBP) was mixed at the end of last week following the publication of the UK’s last economic releases of the year.
While GBP investors welcomed an impressive rebound in UK retail sales last month, Sterling sentiment was tempered by a downwards revision to GDP in the third quarter as this opened up the possibility of the UK slipping into a recession in the second half of 2023.
With UK data in short supply in the post-Christmas period, movement in the Pound may remain limited until the new year.
Euro (EUR) Firms amid USD Weakness
The Euro (EUR) edged higher on Friday as the single currency was supported by its negative correlation with the US Dollar (USD).
However, the upside in EUR remained capped as the absence of any Eurozone data of note made it difficult for the Euro to consolidate these gains.
Thin trading conditions during the holiday period may see the Euro trade sideways in the coming days.
US Dollar (USD) Slumps to New Lows
The US Dollar dropped to new multi-month lows at the end of last week, ahead of the latest US economic releases.
This data then infused some volatility into USD. While above-forecast durable goods orders reflected positively on USD, these gains were kept in check by a larger-than-expected decline in the Federal Reserve’s preferred measure of inflation, the core PCE price index.
Looking ahead, the only data of note in the post-Christmas period will be the latest US initial jobless claims. Could a rise in new unemployment claims exert some pressure on the US Dollar?
Canadian Dollar (CAD) Pressured by Underwhelming GDP Figures
The Canadian Dollar (CAD) closed last week on the back foot, after Canada’s latest GDP figures printed below expectations.
Oil price dynamics may drive movement in the ‘Loonie’ over the next couple of days. Could an uptick in prices help to propel CAD exchange rates higher?
Australian Dollar (AUD) Rises amid Risk-on Mood
The Australian Dollar (AUD) firmed last night as an upbeat market mood boosted the risk-sensitive currency.
New Zealand Dollar (NZD) Edges Higher in Cheery Trade
The New Zealand Dollar (NZD) also enjoyed the risk-on market mood overnight, although its upside seemed limited amid thin trading conditions.