Pound (GBP) drifts amid data vacuum
The pound (GBP) remained listless at the close of last week, weighed down by the ongoing absence of meaningful UK economic releases.
Sterling also faced headwinds from doubts over the successful finalisation of a UK-US trade agreement, which dented recent positive sentiment around the UK’s economic outlook.
With little on the UK calendar today, the pound may continue to trade without clear direction ahead of tomorrow’s key labour market data.
Euro (EUR) dips as USD strengthens
The euro (EUR) weakened on Friday, with its decline driven largely by the resurgent US dollar (USD), to which it is inversely correlated.
The drop in EUR came despite an upward revision to first-quarter Eurozone GDP, which failed to offer much support.
As the week begins with little in the way of Eurozone data, investors may look to developments in EU-US trade negotiations for cues, with any progress likely to offer the euro a lift.
US dollar (USD) rises on upbeat jobs report
The US dollar (USD) appreciated at the end of last week, following a stronger-than-expected rise in May’s non farm payrolls, despite earlier months’ figures being revised sharply lower.
The better-than-forecast jobs gain helped ease concerns over the need for near-term rate cuts from the Federal Reserve.
The greenback could extend its gains today if investors see signs of movement in high-level US-China trade talks taking place in London.
Canadian dollar (CAD) lifted by surprise job gains
The Canadian dollar (CAD) advanced on Friday, after Canada’s latest employment figures surprised to the upside by reporting an increase of nearly 9,000 jobs in May, defying expectations for a contraction.
If oil prices continue to rally today, the ‘loonie’ could build on last week’s upward momentum.
Australian dollar (AUD) climbs on trade optimism
The Australian dollar (AUD) opened the week on firmer footing, with hopes for progress in US-China trade discussions fuelling demand for the risk-sensitive currency in Asian trading hours.
New Zealand dollar (NZD) supported by improved risk appetite
The New Zealand dollar (NZD) also pushed higher overnight, with the upbeat sentiment ahead of today’s trade talks contributing to a broader improvement in market mood.
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