Pound (GBP) struggles despite upbeat sales data
The Pound (GBP) was muted at the end of last week, despite the UK’s latest retail sales data smashing forecasts.
While GBP investors welcomed last month’s spectacular rebound in sales growth, it wasn’t enough to counter previous data releases which stoked expectations for an imminent interest rate cut from the Bank of England (BoE).
Turning to this week, a lull in UK data at the start of the session may leave the Pound vulnerable to losses if markets continue to speculate on upcoming BoE rate cuts.
Euro (EUR) pressured by USD
The Euro (EUR) initially firmed on Friday, buoyed by comments from European Central Bank (ECB) executive board member Isabel Schnabel, cautioning against adjusting the bank’s policy stance prematurely.
However, the single currency’s negative correlation with the US Dollar (USD) then sapped EUR demand later in the session.
Eurozone data is thin on the ground at the start of this week. As a result, the Euro may struggle to find direction.
US Dollar (USD) strengthens on stronger-than-expected PPI figures
The US Dollar closed last week on a positive note, following the publication of the latest US producer price index.
January’s PPI figures printed above expectations, with a larger-than-expected rebound indicating that US inflationary pressures remain.
Coming up, movement in the US Dollar may be limited in the first half of this week as US markets are closed for Washington’s birthday.
Canadian Dollar (CAD) buoyed by uptick in oil prices
The Canadian Dollar (CAD) ticked higher on Friday as a modest uptick in oil prices reflected positively on the crude-linked ‘Loonie’.
Will another uptick in domestic inflation provide another boost for the Canadian Dollar in the first half of this week?
Australian Dollar (AUD) flat in cautious trade
The Australian Dollar (AUD) was left rangebound in overnight trade, with investors wary of the risk-sensitive currency amid a cautious market mood.
New Zealand Dollar (NZD) Firms amid RBNZ speculation
The New Zealand Dollar (NZD) ticked higher overnight as NZD investors repriced their expectations for the next Reserve Bank of New Zealand (RBNZ) interest rate cut, with analysts now predicting it will start easing its monetary policy from November, rather than August as previously forecast.