Pound (GBP) unsure amid lack of impactful data
The pound (GBP) traded without a clear direction on Friday, although it held on to most of its weekly gains, amid a lack of impactful UK data.
The only release was the final services PMI, which printed marginally higher than the preliminary estimate, leaving GBP muted.
Market-moving UK data is in short supply at the start of this week’s session, potentially leaving GBP to trade without a clear directional bias.
Euro (EUR) propped up by ECB Lagarde comments
The euro (EUR) was mixed on Friday, with EUR managing to firm against weaker rivals but struggling against riskier peers amid an upbeat mood.
Supporting the single currency were comments from European Central Bank (ECB) President Christine Lagarde, who indicated that she is happy to take a firm stance on inflation without fearing a hard landing.
Looking forward, the euro could enjoy support today after German factory orders rebounded in May. If the latest Eurozone retail sales data also points to a recovery later this morning, EUR could climb.
US dollar (USD) muted as US markets close
The US dollar (USD) was subdued on Friday as US markets closed for the Independence Day weekend.
Thursday’s dire payrolls data also continued to mute USD demand, seeing the ‘greenback’ weaken against some of its stronger counterparts.
The focus today will be on the latest ISM services PMI. If it indicates a slowdown in service-sector activity, the ‘greenback’ could weaken.
Canadian dollar (CAD) slips amid weak oil prices
The crude-linked Canadian dollar (CAD) trended lower on Friday, with softer oil prices dragging on the currency.
Later today, Canada’s June services PMI is due to be published. A modest improvement in activity could support CAD, although the ‘loonie’ may struggle if oil prices remain weak.
Australian dollar (AUD) wobbles as inflationary pressures ease
The Australian dollar (AUD) wavered as this week’s session began after the latest monthly inflation figures showed prices falling in June, although the ‘Aussie’ avoided steep losses.
New Zealand dollar (NZD) falls ahead of RBNZ decision
The New Zealand dollar (NZD) slipped during Monday’s Asian session, following a strong performance last week, as NZD investors turned bearish ahead of the Reserve Bank of New Zealand (RBNZ) interest rate decision on Wednesday.
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