Pound (GBP) muted in absence of data
The pound (GBP) was subdued at the end of last week as a lack of UK economic data left the currency rudderless.
With no fundamental drivers of movement for GBP, Sterling wavered in a wide range and lost ground against its stronger peers.
Looking at the week ahead, UK data is thin on the ground until Friday, when an expected contraction in GDP in February could dent GBP. In the meantime, a speech from Bank of England (BoE) Deputy Governor Sarah Breeden could impact the pound.
Euro (EUR) limited by weaker economic data
The euro (EUR) also lacked support during Friday’s session following weaker-than-forecast economic data from the Eurozone.
Retail sales in the block contracted more than forecast in February while Germany factory orders grew far less than expected during the same period.
This morning, mixed German data has seen the euro start without a clear direction. A large contraction in German exports in February was offset by strong growth in industrial production.
US dollar (USD) rallies on hot payrolls report
The US dollar (USD) shot higher on Friday after the latest US non-farm payrolls report smashed forecasts.
The American economy added 303,000 jobs in March, beating expectations of 200,000 to show an acceleration in jobs growth. However, the ‘greenback’ trimmed its gains by the end of the session.
Amid a lack of more impactful US data today, the latest consumer inflation expectations figure could affect USD. If American consumers anticipate lower inflation for the year ahead, the ‘greenback’ could stumble.
Canadian dollar (CAD) tumbles amid rising unemployment
The Canadian dollar (CAD) slumped to weekly lows on Friday after Canada’s unemployment rate leapt from 5.8% to 6.1% in March.
Turning to today, Canadian economic data is in short supply. As a result, oil prices could drive the crude-linked ‘loonie’.
Australian dollar (AUD) wavers higher as risk appetite increases
The Australian dollar (AUD) wobbled as this week’s session got underway, although the risk-sensitive ‘Aussie’ eventually trended slightly higher as the market mood improved.
New Zealand dollar (NZD) underpinned by upbeat mood
Likewise, the New Zealand dollar (NZD) started today’s session on unsteady footing, but cautiously upbeat trade is keeping the ‘Kiwi’ afloat.