Pound (GBP) sheds post-GDP gains
The pound (GBP) initially strengthened on Friday after data showed that the British economy came out of recession in the first quarter of the year, with UK GDP expanding more than expected.
However, Sterling was unable to hold on to its gains. Expectations of slow growth in the months ahead and coming interest rate cuts from the Bank of England (BoE) both sapped the pound’s appeal.
Turning to today, British economic data is thin on the ground. GBP exchange rates could therefore move without a clear direction.
Euro (EUR) slips following ECB minutes
The euro (EUR) fell against many of its peers on Friday following the publication of the minutes from the European Central Bank’s (ECB) latest meeting.
The accounts from the bank’s last interest rate decision showed that policymakers intend to cut rates at the ECB’s meeting next month, barring any surprise inflation data in the interim.
Market-moving Eurozone data is absent from the calendar today. This could leave the common currency muted.
US dollar (USD) buoyed by rising Treasury yields
The US dollar (USD) enjoyed modest success at the end of last week, thanks to an uptick in US Treasury bond yields.
USD’s upside was limited, however, by a slump in American consumer confidence and a tepid market mood.
Looking ahead, two Federal Reserve policymakers are due to speak this afternoon. Could dovish comments dent USD?
Canadian dollar (CAD) jumps following strong jobs data
The Canadian dollar (CAD) leapt higher on Friday after Canada’s latest employment data came in stronger than expected.
Today, domestic economic data is thin on the ground, which may leave the crude-linked ‘loonie’ to be driven by oil prices.
Australian dollar (AUD) struggles as business confidence disappoints
The Australian dollar (AUD) softened overnight after the latest Australian business confidence index fell short of expectations and a risk-off mood gripped markets.
New Zealand dollar (NZD) falls amid weaker services sector
The New Zealand dollar (NZD) also stumbled last night following weaker-than-forecast data. New Zealand’s services PSI for April missed expectations to show an ongoing contraction in service sector activity.