Pound (GBP) subdued amid ongoing data drought
The pound (GBP) remained muted through the end of last week, with the continued lack of meaningful UK economic releases offering little direction for the currency.
Although lower UK borrowing costs provided some underlying support, they were insufficient to help Sterling keep pace with the stronger performance of many of its peers.
With UK economic releases remaining sparse through the first half of this week, trading conditions for the pound may continue to be relatively subdued.
Euro (EUR) supported by weaker USD
The euro (EUR) advanced on Friday, benefiting from its inverse relationship with the US dollar (USD).
However, the single currency’s gains were limited as an improvement in market sentiment simultaneously reduced demand for safe-haven assets.
With no major Eurozone economic releases due, the euro may struggle to establish a clear direction at the beginning of this week.
US dollar (USD) dives after disappointing payroll report
The US dollar (USD) ended last week’s session under heavy pressure after the latest non-farm payrolls report unexpectedly showed the US labour market contracted last month.
The disappointing release dragged USD exchange rates to fresh multi-month lows as investors abandoned expectations of a Federal Reserve interest rate increase next month.
At the start of this week, the US dollar may remain under pressure as markets continue to reposition following Friday’s unexpectedly weak employment figures.
Canadian dollar (CAD) boosted by falling unemployment
The Canadian dollar (CAD) strengthened on Friday after an upbeat employment report revealed the country’s unemployment rate unexpectedly dropped to a two-year low in July.
Looking ahead, the ‘loonie’ could encounter headwinds early this week if renewed optimism surrounding a US-Iran ceasefire weighs on oil prices.
Australian dollar (AUD) pressured by Chinese inflation worries
The Australian dollar (AUD) weakened throughout Monday’s Asian session after China’s latest inflation figures revived concerns over disinflation in Australia’s largest export market.
New Zealand dollar (NZD) subdued as caution returns
The New Zealand dollar (NZD) also traded lower overnight as a softer market mood reduced demand for risk-sensitive currencies.
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