Pound (GBP) muted amid thin UK data
The pound (GBP) traded sideways on Friday as a lack of notable UK data left Sterling without a clear catalyst, although it retained the bulk of its weekly gains.
The only domestic release was the finalised services PMI, which came in slightly above the preliminary reading but failed to spark much movement in GBP.
High-impact UK economic releases are also scarce at the start of this week’s session, which could leave the pound trading without a defined direction.
Euro (EUR) supported by Lagarde remarks
The euro (EUR) traded in a mixed range on Friday, gaining ground against weaker currencies but struggling to advance against its risk-sensitive peers amid a positive market mood.
The single currency found some support from comments by European Central Bank (ECB) President Christine Lagarde, who suggested she is comfortable maintaining a tough stance on inflation without being overly concerned about triggering a hard landing.
Looking ahead, the euro may strengthen today after German factory orders recovered in May. Should the latest Eurozone retail sales figures also signal a rebound later this morning, EUR could extend its gains.
US dollar (USD) subdued as US markets close
The US dollar (USD) was muted on Friday as US markets shut for the Independence Day weekend.
Thursday’s bleak payrolls figures also continued to weigh on demand for USD, leaving the ‘greenback’ on the defensive against some of its stronger rivals.
Today, attention turns to the latest ISM services PMI. If the index points to slowing activity across the US services sector, the US dollar could soften.
Canadian dollar (CAD) weakens amid softer oil prices
The oil-sensitive Canadian dollar (CAD) drifted lower on Friday as a decline in crude prices weighed on the currency.
Canada’s June services PMI is set for release later today. A modest improvement in activity could lend CAD some support, although the ‘loonie’ may remain under pressure if oil prices stay weak.
Australian dollar (AUD) fluctuates as inflationary pressures cool
The Australian dollar (AUD) was unsteady at the start of this week’s session after the latest monthly inflation data showed prices declined in June, though the ‘Aussie’ managed to avoid significant losses.
New Zealand dollar (NZD) retreats ahead of RBNZ decision
The New Zealand dollar (NZD) fell during Monday’s Asian session, giving back some of last week’s gains, as NZD investors turned cautious ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.
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