Pound (GBP) rebounds after GDP-driven dip
The pound (GBP) found some modest footing toward the end of last week, with Sterling managing to recoup part of Thursday’s earlier decline.
This recovery hinted that the post-GDP selloff, which followed November’s stronger-than-forecast growth figures, may have been overdone.
With no significant UK economic releases scheduled, movement in the pound may remain subdued today, particularly as GBP investors look ahead to several high-impact data releases later in the week.
Euro (EUR) constrained by Greenland rhetoric
The euro (EUR) traded sideways on Friday, as the single currency continued to encounter headwinds stemming from renewed US rhetoric surrounding Greenland.
In remarks to Fox News, US special envoy to Greenland Jeff Landry stated that President Donald Trump is ‘serious’ about controlling Greenland and insisted that a deal ‘should and will be reached’.
Trump then escalated the issue over the weekend by threatening fresh tariffs on European countries opposing the US acquisition of Greenland, a development that could inject volatility into the euro at the start of this week.
US dollar (USD) pressured by improving risk appetite
The US dollar (USD) edged lower at the end of last week as a modest uptick in risk sentiment reduced demand for the safe-haven currency.
That said, losses were capped after US industrial production figures surprised to the upside.
At the start of this week, the US dollar appears exposed, with USD investors unsettled by President Trump’s latest tariff threats.
Canadian dollar (CAD) supported by firmer oil prices
The Canadian dollar (CAD) remained steady on Friday, as a rebound in oil prices helped counter fresh concerns about Canada’s increasingly strained trade relationship with the US.
Canada is set to release its latest CPI figures later today. While economists expect inflation to cool slightly in December, the data is unlikely to alter the Bank of Canada’s (BoC) interest rate outlook, potentially limiting the impact on CAD exchange rates.
Australian dollar (AUD) lifted by strong Chinese data
The Australian dollar (AUD) advanced during Monday’s Asian trading session, benefiting from Australia’s close trade links with China as Chinese GDP and industrial production figures exceeded expectations.
New Zealand dollar (NZD) supported by risk-on sentiment
The New Zealand dollar (NZD) also strengthened in overnight trade, with improved Chinese growth data helping to bolster overall market risk appetite.
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