US dollar slips amid US-China trade uncertainty

Pound (GBP) subdued despite positive retail sales

The pound (GBP) was mixed on Friday, with Sterling slipping against stronger peers despite better-than-expected retail sales figures.

UK sales increased 0.4% in March, rather than contracting 0.4% as expected. Nevertheless, Sterling struggled to attract support.

The only UK data out today is the Confederation of British Industry’s (CBI) distributive trades survey. If it adds to pessimism around the health of the UK economy, Sterling could slip.

Euro (EUR) rebounds as USD declines

The euro (EUR) trended broadly lower on Friday as cautious optimism for a US-China trade agreement dampened demand for the safe-haven single currency.

However, EUR exchange rates were able to regain ground in the afternoon as the currency benefitted from a pullback in the US dollar (USD).

Later this afternoon, European Central Bank (ECB) Vice-President Luis de Guindos is due to speak. Could dovish comments dent the euro?

US dollar (USD) ticks lower as consumer confidence weakens

The US dollar came under pressure on Friday amid mixed reports about a potential trade de-escalation between China and the US.

Confirmation of a sharp decline in US consumer sentiment in April then applied additional pressure to USD in the afternoon.

The week ahead brings a flurry of high-impact US economic data releases, with the US dollar poised to plunge if they point to a slowing economy. Today USD may be muted as investors await the releases.

Canadian dollar (CAD) uncertain amid mixed trade

The crude-linked Canadian dollar (CAD) faced mixed movement on Friday. While falling oil prices pressured CAD, stronger-than-forecast retail sales figures helped offset the downside.

Turning to this week, the focus for CAD is Canada’s federal election. Investors tend to prefer stability and consistency over change, so a victory for Mark Carney’s Liberals could potentially support the ‘loonie’.

Australian dollar (AUD) muted in absence of data

The Australian dollar (AUD) was mostly muted overnight, though it weakened against some rivals, amid a lack of data and an uncertain market mood.

New Zealand dollar (NZD) subdued in quiet trade

The New Zealand dollar (NZD) was similarly subdued overnight, with the quiet market mood and lack of data limiting movement.


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Samuel Birnie

Contact Samuel Birnie


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