Pound (GBP) mixed amid data drought
Trading in the pound (GBP) was uneven at the close of last week, as the ongoing lack of notable UK economic releases left Sterling at the mercy of broader currency market dynamics.
As a result, the pound strengthened against its more risk-sensitive rivals while slipping against currencies perceived as more robust.
With UK data still thin on the ground at the start of this week, Sterling may remain vulnerable to swings in wider market sentiment.
Euro (EUR) weighed down by disappointing releases
The euro (EUR) struggled on Friday, initially pressured after Germany’s latest trade data revealed an unexpected fall in exports during November.
EUR sentiment stayed fragile after subsequent figures showed Eurozone retail sales also cooled over the same period.
Looking ahead, the single currency may trade cautiously, with EUR investors reluctant to take strong positions ahead of talks between the US and Denmark over Greenland’s future.
US dollar (USD) gains as jobless rate declines
The US dollar (USD) advanced at the end of last week as investors reacted to the latest US non-farm payrolls report.
Although December’s figures showed hiring momentum slowed, an unexpected drop in unemployment to 4.4% appeared to curb dovish Federal Reserve expectations and support USD demand.
However, at the start of this week, the US dollar is surrendering those gains as questions resurface over the Fed’s independence, following a criminal investigation launched by the US Justice Department into Chair Jerome Powell, which he described as politically motivated.
Canadian dollar (CAD) pressured by jump in unemployment
The Canadian dollar (CAD) weakened on Friday after data revealed a larger-than-anticipated rise in domestic unemployment last month, disappointing CAD investors.
Looking ahead, the ‘loonie’ could attempt a rebound early this week if oil prices continue their upward trajectory.
Australian dollar (AUD) supported by softer USD
The Australian dollar (AUD) found modest support during Monday’s Asian session, as a pullback in the US dollar helped lift overall risk appetite.
New Zealand dollar (NZD) strengthens on improved sentiment
The New Zealand dollar (NZD) also moved higher in overnight trade, buoyed by a more positive tone in global risk sentiment.
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