Pound (GBP) directionless as UK data remains scarce
The pound (GBP) lacked a clear direction on Friday, with an absence of fresh UK economic releases leaving the currency without a meaningful catalyst.
Although Sterling made gains against some of its weaker counterparts, it struggled to advance against other currencies as support remained limited.
Looking ahead, two Bank of England (BoE) policymakers are scheduled to speak today. Any hawkish remarks could help bolster the pound.
Euro (EUR) slides as French bond yields climb
The euro (EUR) lost ground on Friday as French bond yields began edging higher again, reviving concerns that the country’s debt crisis could spread to other parts of the Eurozone.
At the same time, a quiet economic calendar offered little support to the single currency.
European Central Bank (ECB) policymaker Boris Vujčić is due to speak today. Given his reputation as one of the ECB’s more hawkish policymakers, his remarks could provide a lift for the common currency.
US dollar (USD) rebounds despite weaker sentiment data
The US dollar (USD) initially came under pressure on Friday as an improvement in market sentiment reduced demand for the safe-haven currency.
However, the USD subsequently recovered, managing to regain ground despite US consumer sentiment falling more sharply than expected in October.
With few US economic releases scheduled at the start of the week, broader risk appetite may influence the US dollar’s performance. Markets are likely to monitor developments in oil prices and the situation in the Middle East closely.
Canadian dollar (CAD) tumbles after disappointing jobs figures
The Canadian dollar (CAD) suffered heavy losses towards the end of last week after fresh data revealed a concerning increase in unemployment in September.
Looking to today, movements in oil prices could influence the crude-linked Canadian dollar, with any fluctuations in crude potentially triggering volatility in CAD.
Australian dollar (AUD) edges lower as caution returns
The Australian dollar (AUD) slipped modestly during Monday’s Asian session as a more cautious market mood prompted the currency to give back some of last week’s gains.
New Zealand dollar (NZD) weakens as risk appetite fades
The New Zealand dollar (NZD) also moved broadly lower overnight as appetite for riskier assets diminished.
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