Pound (GBP) supported by encouraging economic data
The pound (GBP) stabilised at the end of last week as investors responded positively to a run of stronger-than-expected UK economic releases.
Both the UK’s latest retail sales figures and services PMI exceeded forecasts, easing some of the concerns that have weighed on the domestic economy in recent months.
The Confederation of British Industry (CBI) publishes its latest distributive trades survey later today, with another improvement in retail conditions potentially providing Sterling with additional support.
Euro (EUR) weakens in spite of upbeat PMIs
The euro (EUR) moved broadly lower at the end of last week, even though the Eurozone’s flash PMIs for July came in ahead of market expectations.
The single currency’s decline appeared to stem from mounting concerns over Europe’s energy outlook, as fears of gas shortages this winter continued to build.
Attention now turns to Germany’s latest IFO business climate index, which could lend the euro fresh support if business confidence improved again this month.
US dollar (USD) pressured by latest Trump tariff measures
The US dollar (USD) initially slipped on Friday after President Donald Trump announced a fresh round of tariffs on 60 US trading partners, reigniting concerns over global trade.
However, the ‘greenback’ regained some composure later in the session after July’s S&P PMIs indicated stronger-than-expected growth across the US private sector.
Looking to today, the US dollar may come under renewed pressure amid a pause in hostilities between the US and Iran and reports suggesting a ceasefire could be on the horizon.
Canadian dollar (CAD) weighed down by weaker oil prices
The Canadian dollar (CAD) edged lower on Friday as falling oil prices combined with a much softer-than-expected domestic producer price index to dampen demand.
Expect the ‘loonie’ to remain closely tied to oil market movements at the beginning of this week, with a 6% slump in crude prices this morning likely to extend recent losses.
Australian dollar (AUD) climbs on ceasefire optimism
The Australian dollar (AUD) advanced during Monday’s Asian session as improving risk appetite, fuelled by hopes of a Middle East ceasefire, boosted the risk-sensitive currency.
New Zealand dollar (NZD) gains on improving market sentiment
The New Zealand dollar (NZD) also rose in overnight trading as the brighter market mood supported risk assets, although its advance was more restrained than that of the ‘Aussie’.
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