Pound (GBP) subdued amid slump in retail sales
The pound (GBP) was muted on Friday, but managed to avoid a selloff, despite a huge 2.3% slump in UK retail sales in April.
Although the dismal retail data did put some pressure on the pound, Sterling was able to resist steeper losses thanks to a risk-on mood and the recent pullback in Bank of England (BoE) interest rate cut bets.
Turning to today, the Confederation of British Industry’s (CBI) latest distributive trades survey could affect GBP amid a lack of more impactful data. Could another dismal reading dent GBP?
Euro (EUR) muted amid ECB rate cut bets
The euro (EUR) was subdued on Friday as ongoing expectations for a rate cut from the European Central Bank (ECB) next week weighed on the common currency.
However, EUR’s downside was cushioned by the currency’s strong negative correlation with a falling US dollar (USD).
So far today, a higher-than-forecast monthly uptick in German wholesale prices in April seems to be lending the euro some support, as it suggests persistent inflationary pressures in the Eurozone’s largest economy.
US dollar (USD) falls as market mood improves
A risk-on market mood undermined the safe-haven US dollar on Friday, while an unexpected rise in US durable goods orders failed to lift the ‘greenback’.
USD extended its losses at the start of this week, as an ongoing demand for riskier currencies saw investors abandon the US dollar.
Looking ahead, the latest US consumer confidence index could impact USD this afternoon. Will a decline in morale weigh on the US dollar?
Canadian dollar (CAD) fluctuates higher alongside oil
The crude-linked Canadian dollar (CAD) traded in tandem with oil prices last Friday, initially stumbling before rallying in the afternoon.
Today, CAD investors may focus on Canada’s latest producer price inflation reading. Could a cooldown in April’s monthly reading dent the ‘loonie’?
Australian dollar (AUD) capped by weaker retail sales
The Australian dollar (AUD) has strengthened this week amid a risk-on market mood. However, disappointing Australian retail sales results last night put a lid on AUD.
New Zealand dollar (NZD) climbs amid risk-positive trade
The New Zealand dollar (NZD) has also climbed higher this week, with the risk-sensitive ‘kiwi’ enjoying the bullish market mood.