Pound (GBP) buoyed as UK retail activity recovers
The pound (GBP) traded with modest gains on Monday, in response to the Confederation of British Industry’s (CBI) latest distributive trades index.
The CBI reported retail sales volumes saw a marginal increase in March, the first positive reading since April 2023.
Looking ahead, with UK data in short supply today, the pound may struggle to find direction.
Euro (EUR) supported by USD weakness
The euro (EUR) benefitted from its negative correlation with the US dollar (USD) on Monday, as the ‘greenback’ weakened.
However, demand for the single currency remained very limited in scope as a result of the prevailing risk-on market mood.
Turning to today, will a better-than-expected improvement in Germany’s latest consumer confidence index lend support to the euro?
US dollar (USD) undermined by profit-taking
The US dollar opened this week on the back foot, with the currency running afoul of some profit-taking after it surged in the second half of last week.
However, the pullback in USD exchange rates remained fairly limited, thanks to an uptick in US Treasury yields.
The publication of the latest US durable goods orders data will be the main focus for USD investors today, with the ‘greenback’ potentially rallying later this afternoon if goods orders rebounded in February as forecast.
Canadian dollar (CAD) dips despite buoyant oil prices
The Canadian dollar (CAD) came under pressure on Monday, as the currency’s positive correlation with the US dollar offset a rise in oil prices
Australian dollar (AUD) undermined by drop in consumer confidence
The Australian dollar (AUD) traded erratically overnight as a deterioration in domestic consumer confidence offset the gains stemming from a prevailing risk-on mood.
New Zealand dollar (NZD) buoyed in upbeat trade
The New Zealand dollar (NZD) was better able to capitalise on the bullish mood, allowing the ‘Kiwi’ to drift higher in overnight trade.