Pound (GBP) buoyed by positive retail sales print
The pound (GBP) closed last week’s session on a positive note, following the release of the UK’s latest retail sales data.
While September’s data reported sales growth slowed from 1% to 0.3% in September, this outpaced forecasts for a 0.3% contraction.
Meanwhile, a lull in UK data could leave Sterling directionless at the start of this week’s session.
Euro (EUR) buoyed by USD weakness
The euro (EUR) edged higher on Friday, with the single currency clawing back some of the losses which followed the European Central Bank’s (ECB) interest rate cut on Thursday.
This rebound in the euro appeared primarily driven by its negative correlation with the US dollar (USD), which stumbled on Friday.
Germany’s latest producer price index is likely to drag on the euro this morning after reporting the drop in producer inflation accelerated in September.
US dollar (USD) slips in risk-on trade
The US dollar ended last week’s session on the back foot as the broadly positive market mood sapped the appeal of the safe-haven currency.
Helping to limit the dollar’s losses, however, was a modest uptick in US Treasury yields.
Turning to today’s session, in the absence of any notable US economic data, the US dollar may struggle to find momentum, particularly if risk appetite remains buoyant.
Canadian dollar (CAD) undermined by sliding oil prices
The Canadian dollar (CAD) also retreated on Friday as the commodity-linked currency was undermined by a softening of oil prices.
Expect to see the ‘loonie’ extend these losses if oil prices continue to decline at the start of this week.
Australian dollar (AUD) fluctuates following China rate cut
The Australian dollar (AUD) initially firmed in overnight trade following the People’s Bank of China (PBoC) announcement of a cut to loan prime rates, before tumbling at the end of the Asian trading session as market sentiment soured.
New Zealand dollar (NZD) zig-zags in uneven trade
Movement in the New Zealand dollar (NZD) tracked that of the ‘Aussie’ in overnight trade, with NZD’s initial gains being quickly reversed.