Pound (GBP) buoyed by BoE rate expectations
The pound (GBP) trended broadly higher against most of its major peers apart from the US dollar (USD) on Friday.
While UK economic data was in short supply, Sterling sentiment was underpinned by bets the Bank of England (BoE) will cut interest rates at a slower pace that other central banks.
Coming up, movement in the pound may be limited today as GBP investors brace for the release of the latest UK employment figures on Tuesday.
Euro (EUR) dented by revised GDP figures
The euro (EUR) closed last week on the back foot as EUR investors were dismayed by the latest Eurozone GDP release.
The latest estimate of growth in the second quarter was revised down from 0.3% to 0.2% as inflation and high interest rates limited consumer spending and investment in the bloc.
Looking ahead, investors may be reluctant to alter their positions in the euro in the first half of the week, ahead of a widely expected interest rate cut from the European Central Bank (ECB) on Thursday.
US dollar (USD) rocked by mixed US payroll report
Trade in the US dollar (USD) was erratic on Friday, following the publication of the latest US non-farm payroll figures.
A kneejerk reaction to the data sent USD exchange rates lower as payrolls printed below expectations in August. However, the US dollar swiftly rebounded as USD investors welcomed a sharper-than-forecast appreciation of US wages.
Turning to this week, the US dollar may be muted at the start of the session as markets brace for the latest US inflation figures on Wednesday.
Canadian dollar (CAD) slides as unemployment rise
The Canadian dollar (CAD) closed last week’s session on a sour note as a larger-than-expected increase in domestic unemployment stoked Bank of Canada (BoC) rate cut bets.
Coming up, movement in the ‘loonie’ may be tied to oil price dynamics at the start of this week, with CAD exchange rates at risk of sliding if prices soften.
Australian dollar (AUD) softens amid risk aversion
The Australian dollar (AUD) initially strengthened during last night’s Asian trading session, before swiftly trimming these gains as market risk appetite soured.
New Zealand dollar (NZD) slides in downbeat trade
The New Zealand dollar (NZD) got off to a poor start this week, with the ‘kiwi’ sliding in overnight trade as investors began to shun risk-sensitive currencies.