Pound (GBP) slips as investors book profits
The pound (GBP) edged lower at the end of last week, with a lack of fresh UK data prompting some investors to lock in profits.
This wave of profit taking dragged on Sterling, which had previously found support on stronger economic optimism.
This morning’s release of the UK’s finalised Q1 GDP figures showed the economy expanded 0.7%, in line with forecasts. The confirmation may help to offer the pound a degree of support during today’s session.
Euro (EUR) lifted by hopes for EU-US trade breakthrough
The euro (EUR) found support on Friday amid speculation that a trade deal between the EU and US may be close.
This optimism helped the single currency shrug off a weaker-than-expected Eurozone sentiment index, which revealed confidence slipped this month.
All eyes will be on Germany’s consumer price index today. If inflation accelerated as expected in June, it may ease pressure on the European Central Bank (ECB) to cut rates and lend fresh support to the euro.
US dollar (USD) buoyed by trade deal hopes
The US dollar (USD) saw volatile trade to close out last week. Early strength followed reports the US had finalised a trade pact with China and was close to sign deals with several other countries.
However, the ‘greenback’ came under renewed pressure later in the session after a surprise drop in personal income and spending raised concerns over consumer resilience.
USD investors will likely keep a close eye on any updates regarding further trade agreements, with the current tariff truce set to expire next week.
Canadian dollar (CAD) dips as growth disappoints
The Canadian dollar (CAD) softened on Friday after disappointing GDP figures revealed the economy shrank in both April and May.
With no key Canadian releases due today, the ‘loonie’ is expected to remain sensitive to fluctuations in oil prices.
Australian dollar (AUD) gains on upbeat Chinese data
The Australian dollar (AUD) firmed in overnight trade after China’s latest PMI results surprised to the upside, boosting hopes for improved demand for Australian exports.
New Zealand dollar (NZD) strengthens on improved sentiment
The New Zealand dollar (NZD) also rose in overnight trade, supported by a marked rise in domestic business confidence.
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