Pound (GBP) slumps as UK GDP slows to a crawl
The pound (GBP) was met by notable pressure on Friday, following the release of the UK’s latest GDP figures.
The preliminary figures for the third quarter reported growth slowed from 0.5% to just 0.1% amid the uncertainty posed by the Labour government’s first budget.
Meanwhile, the pound may struggle to find direction today as GBP investors brace for the UK’s latest inflation figures later in the week.
Euro (EUR) supported by USD weakness
The euro (EUR) trended higher at the end of last week’s session amid a pullback in the US dollar (USD).
The strong negative correlation between the world’s most-traded currency pairing, coupled with upwardly revised Eurozone growth forecasts from the European Commission, helped the single currency recoup some of its recent losses.
Turning to this week, EUR investors will look to a speech by European Central Bank (ECB) President Christine Lagarde for impetus today. The euro is likely to sink if she concedes that more interest cuts are required.
US dollar (USD) slides as Trump trade fizzles out
The US dollar stumbled at the end of last week as the recent Trump rally appeared to run out of steam, triggering some profit-taking from USD investors.
However, these losses were tempered somewhat by the latest US retail sales figures as they reported sales growth outpaced expectations in October, while also being revised higher in September.
In the absence of any notable US data, investors are likely to continue to look to Donald Trump’s appointments for direction today as they look for more signals as to what his policy priorities may be.
Canadian dollar (CAD) slides as oil prices soften
The Canadian dollar (CAD) trended lower through Friday’s trading session as the commodity-linked currency was pressured by a weakening of oil prices.
Looking ahead, the ‘loonie’ is likely to remain sensitive to oil price movements at the start of this week, potentially leading to further losses if crude continues to fall.
Australian dollar (AUD) slides in risk-averse trade
The Australian dollar (AUD) weakened through today’ Asian trading session as a cautious market mood limited the appeal of the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) retreats amid cautious mood
The New Zealand dollar (NZD) also came under pressure at the start of this week amid the prevailing risk-off market mood.