Pound (GBP) directionless amid lack of data
The pound (GBP) saw uneven movement on Friday, with a continued lack of domestic data offering little direction to investors.
Sterling drifted lower overall, struggling to hold its ground against more robust currencies.
As the new week begins, the pound may remain muted, with traders hesitant to make bold moves ahead of the Bank of England’s (BoE) interest rate decision later in the week.
Euro (EUR) recovers on inflation surprise
The euro (EUR) regained some ground at the close of last week, bolstered by stronger-than-forecast Eurozone inflation, which cooled expectations of imminent European Central Bank (ECB) easing.
EUR exchange rates also benefited from its negative correlation with the US dollar (USD), amid a broad USD sell-off.
With few major Eurozone releases on the calendar today, the euro could face a subdued start to the week.
US dollar (USD) tumbles after payroll miss
The US dollar’s recent rally was cut short on Friday after July’s non-farm payroll report showed just 73,000 new jobs were added, while June’s figure was revised sharply lower to 14,000.
The dramatic slowdown in job creation triggered a sharp drop in USD demand, as markets ramped up bets on a potential September rate cut from the Federal Reserve.
Adding to pressure on the US dollar, President Donald Trump’s dismissal of the Bureau of Labor Statistics chief in response to the data may keep investors wary.
Canadian dollar (CAD) dips on trade concerns
The Canadian dollar (CAD) ended the week weaker as US President Trump signed an executive order imposing 35% tariffs on Canadian imports.
Lingering anxiety over the fallout from these tariffs could keep the ‘loonie’ on the defensive in the days ahead.
Australian dollar (AUD) lifted by trade optimism
The Australian dollar (AUD) edged higher at the start of the week, continuing to benefit from investor relief over the country’s exemption from the latest US tariff hikes.
New Zealand dollar (NZD) steady in cautious trade
The New Zealand dollar (NZD) held firm overnight, with appetite for the ‘kiwi’ muted amid a broadly risk-off tone in global markets.
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