Pound (GBP) confined to narrow range in subdued trade
The pound (GBP) traded sideways against the majority of its peers yesterday, with the currency lacking clear direction amid the absence of any significant UK economic releases.
The muted performance was reinforced by calm conditions in the UK bond market, which offered little incentive for GBP investors.
With UK data once again limited today, movement in the pound is likely to be dictated by broader market sentiment.
Euro (EUR) weakens after disappointing retail sales figures
The euro (EUR) came under pressure on Thursday following a mixed batch of Eurozone economic data.
Although German factory orders comfortably exceeded expectations with 3.1% growth in June, the increase was viewed as temporary. Combined with an unexpected slump in Eurozone retail sales over the same period, this dragged the single currency lower.
The euro could remain under pressure today after data released this morning revealed German industrial production slowed at the close of the second quarter.
US dollar (USD) supported ahead of key payroll release
The US dollar (USD) attracted modest demand yesterday as mounting uncertainty surrounding a possible US-Iran ceasefire boosted appetite for safe-haven assets.
The currency’s advance was further underpinned by the latest US labour market data, with initial jobless claims remaining below 200,000 for a third straight week at the end of July.
Rounding off the week is the release of the latest non-farm payrolls report. Could another disappointing US employment reading undermine expectations for a Federal Reserve interest rate hike next month and trigger fresh USD losses?
Canadian dollar (CAD) stable as oil prices recover
The Canadian dollar (CAD) remained broadly steady on Thursday as Brent crude climbed back above the $80-a-barrel mark.
Canada’s latest employment figures may weigh on the ‘loonie’ later today if July’s report indicates hiring momentum weakened last month.
Australian dollar (AUD) subdued amid cautious sentiment
The Australian dollar (AUD) traded without clear direction during Friday’s Asian session as uncertainty in the Middle East and caution ahead of this afternoon’s US payroll figures dampened market risk appetite.
New Zealand dollar (NZD) muted as caution prevails
The New Zealand dollar (NZD) also remained subdued overnight as investors continued to favour a more cautious approach.
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