Pound (GBP) licks wounds following weak UK data
The pound (GBP) was subdued at the end of last week, amid speculation the Bank of England (BoE) may accelerate its monetary easing in the coming months.
This follows a run of lacklustre UK economic releases, including last week’s disappointing employment and GDP figures.
Turning to the start of this week, movement in the pound may be limited as GBP investors err on the side of caution ahead of the BoE’s impending interest rate decision.
Euro (EUR) undermined by profit-taking
The euro (EUR) ticked lower on Friday, with the single currency relinquishing some of the prior session’s gains as EUR investors sought to book their profits.
This weakness was exacerbated by the euro’s negative correlation with the US dollar (USD).
Looking forward, EUR exchange rates may be left adrift at the start of this week, in the absence of any notable Eurozone data.
US dollar (USD) surges amid Middle East crisis
The US dollar was catapulted higher at the end of last week, as a series of Israeli attacks on Iranian nuclear and military sites saw investors flock to safe-haven assets.
These gains were then reinforced after the University of Michigan reported a stronger-than-expected improvement in US consumer morale this month.
Expect the US dollar to maintain a positive trajectory at the start of this week if tensions in the Middle East continue to flare.
Canadian dollar (CAD) jumps in tandem with oil prices
The Canadian dollar (CAD) rallied on Friday, with the commodity-sensitive currency tracking oil prices higher amid concerns that tensions in the Middle East could constrain supplies.
If this oil price rally persists into the start of this week, the ‘loonie’ is likely to maintain its upward momentum.
Australian dollar (AUD) subdued amid risk-off mood
The Australian dollar (AUD) was muted overnight as markets remained concerned about the ongoing crisis in the Middle East.
New Zealand dollar (NZD) supported by rising commodity prices
The New Zealand dollar (NZD) managed to crawl higher last night despite the anxious mood as rising commodity prices supported the resource-linked ‘kiwi’.
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