Pound (GBP) pressured by weak retail sales data
The pound (GBP) weakened towards the close of last week after the latest UK retail sales figures weighed on sentiment.
Retail sales in the UK fell by 0.4% in February. While this was a smaller decline than the 0.7% drop forecast, it nonetheless heightened concerns over the resilience of the economy ahead of the conflict in Iran.
With little in the way of UK data today, Sterling may lack a clear directional bias.
Euro (EUR) undermined by stronger USD
The euro (EUR) came under pressure on Friday, with its inverse relationship to the US dollar (USD) dragging on demand.
In the absence of notable Eurozone data, the single currency was left exposed, resulting in some losses.
Looking ahead, an anticipated fall in Eurozone economic sentiment for March may apply further pressure this morning. However, a notable uptick in German inflation later in the day could help to underpin EUR.
US dollar (USD) restrained by weak consumer sentiment
The US dollar advanced on Friday as risk aversion dominated, despite US President Donald Trump attempting to calm markets by postponing strikes on Iran.
That said, the ‘greenback’ surrendered some gains later in the session after March’s final consumer sentiment index revealed a sharper-than-expected deterioration.
With limited US data due today, shifts in market sentiment are likely to drive USD. Continued unease surrounding tensions in the Middle East may offer support.
Canadian dollar (CAD) directionless despite higher oil prices
The Canadian dollar (CAD), which is closely tied to oil prices, traded in a mixed fashion on Friday. Although rising crude prices offered some support, CAD struggled to build momentum against several counterparts.
Today, movements in the energy market are likely to remain the main influence. Further gains in oil prices could lend the Canadian dollar additional support.
Australian dollar (AUD) pressured by escalation concerns
The Australian dollar (AUD) slipped at the start of this week’s session as fears of an escalation in the US-Iran conflict dampened risk appetite.
New Zealand dollar (NZD) weakens amid cautious sentiment
Similarly, the New Zealand dollar (NZD) edged lower as a more cautious market mood reduced demand for the ‘kiwi’.
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