Pound (GBP) directionless in quiet trade
The pound (GBP) traded without a strong directional bias on Friday as GBP investors continued to digest the Bank of England’s (BoE) interest rate decision on Thursday.
Sterling also appeared unmoved by comments from BoE Chief Economist Huw Pill that the bank needs to focus on long-term inflationary pressures.
Meanwhile, movement in the pound may be limited today as GBP investors brace for some high-impact UK data releases later in the week.
Euro (EUR) slides amid German political uncertainty
The euro (EUR) stumbled on Friday as the collapse of Germany’s coalition government earlier in the week, stoked concerns over the direction of the Eurozone’s largest economy.
These losses were compounded by the single currency’s negative correlation with the US dollar (USD).
EUR economic data is thin on the ground at the start of this week, which may leave the euro to trade sideways today.
US dollar (USD) buoyed by cautious mood
The US dollar trended higher at the end of last week’s session, as the downbeat mood saw investors favour the safe-haven currency.
Reinforcing the upside in the ‘greenback’ was the University of Michigan’s latest US consumer sentiment index, which reported morale climbed to a six-month high in November.
Turning to this week, will confirmation that the Republicans held on to the House of Representatives propel the US dollar to new highs? Or will holiday-thinned trade limit USD volatility?
Canadian dollar (CAD) subdued as employment growth slows
The Canadian dollar (CAD) was muted on Friday as Canada’s latest jobs data reported employment growth was weaker than expected in October.
In the absence of any notable Canadian data at the start of this week, it’s likely any movement in the ‘loonie’ will be tied to oil price dynamics. Will a continued fall in global crude prices pull CAD lower?
Australian dollar (AUD) muted on weak Chinese inflation data
The Australian dollar (AUD) got off to a slow start this week, as weak Chinese inflation figures released over the weekend, limited the appeal of the ‘Aussie’.
New Zealand dollar (NZD) subdued in cautious trade
The New Zealand dollar (NZD) was also muted in overnight trade as investors erred on the side of caution.