US Dollar (USD) volatile following jobs data
The US Dollar (USD) was infused with volatility on Friday as markets digested the latest non-farm payrolls figures. Although December’s figure beat forecasts, the November and October results were revised lower.
A weaker services PMI later in the afternoon added to USD’s losses, as American service sector activity nearly ground to a halt in December.
With notable US data in short supply today, the US Dollar could trade on market mood. Could ongoing geopolitical fears see the safe-haven currency attract support?
Pound (GBP) rangebound amid lack of data
The Pound (GBP) traded without a clear direction at the end of last week’s session as a lack of market-moving UK data kept the currency muted.
However, Sterling was able to hold on to most of its weekly gains, despite a cautious market mood, in the wake of Thursday’s strong services PMI.
Looking at the week ahead, a lack of UK data through much of the session could leave Sterling subdued. The only release of note is November’s GDP report, due out on Friday.
Euro (EUR) mixed following CPI release
The Euro (EUR) faced mixed trade on Friday following the Eurozone’s latest consumer price index.
Although headline inflation rose, it printed below expectations. Some economists were split over whether this was a temporary blip in the recent downtrend or if it could mean more stubborn inflation.
Later this morning, EUR could face mixed movement amid an expected rise in Eurozone economic sentiment and contracting retail sales in the bloc.
Canadian Dollar (CAD) dragged down by USD
The Canadian Dollar (CAD) traded in tandem with the US Dollar on Friday, initially rising before falling in the afternoon. An upbeat PMI report and mixed employment data failed to lift CAD exchange rates.
Canadian data is absent from today’s calendar. This could leave the crude-linked ‘Loonie’ to be driven by oil prices. A decline in oil this morning could weigh on the Canadian Dollar.
Australian Dollar (AUD) subdued amid cautious mood
The Australian Dollar (AUD) softened overnight amid a nervous market mood, as fears of an escalation in the Middle East continue to trouble investors.
New Zealand Dollar (NZD) flat in absence of data
The New Zealand Dollar (NZD) fared better than the ‘Aussie’ last night, although the risk-sensitive ‘Kiwi’ remained stuck in a narrow range amid the cautious tone and an absence of economic data.