Pound (GBP) undermined by profit-taking
A bout of profit-taking dragged on the pound (GBP) on Friday, with GBP investors looking to book some of their gains in end-of-week trade.
This followed a steady rise in Sterling earlier in the week as UK data surprised to the upside and underpinned hawkish Bank of England (BoE) rate bets.
Turning to this week, a lull in UK data through the first half of the session is likely to see movement in the pound reflect broader market trends.
Euro (EUR) buoyed by Trump-Putin talk hopes
The euro (EUR) edged higher through Friday’s European session, amid a sense of cautious optimism ahead of US President Donald Trump’s meeting with Russian President Vladimir Putin.
This followed Trump’s threat to place ‘economically severe’ sanctions on Russia if a ceasefire could not be found, although these sanctions have so far not materialised.
Meanwhile, the euro may struggle at the start of this week, amid fresh uncertainty ahead of a meeting between Trump and Ukrainian President Volodymyr Zelenskiy later today.
US dollar (USD) weakens as consumer sentiment deteriorates
The US dollar (USD) closed last week’s session on a sour note, as the University of Michigan’s latest consumer sentiment index reported morale fell to a three-month low in August.
This extended losses from earlier in the session, which stemmed from the optimism ahead of the Trump-Putin summit.
Turning to this week, movement in the US dollar may be limited in the first half of the session as USD investors await the Federal Reserve Chair Jerome Powell’s speech at the bank’s annual Jackson Hole Symposium.
Canadian dollar (CAD) subdued as oil prices soften
The Canadian dollar (CAD) weakened through Friday’s session, undermined by the continued slide in oil prices.
In the absence of any notable Canadian data, its likely movement in the ‘loonie’ will remain tied to oil price dynamics today.
Australian dollar (AUD) firms amid cautious optimism
The Australian dollar (AUD) ticked higher through Monday’s Asian trading session, with the risk-sensitive currency attracting investors amid a tentative improvement in risk appetite.
New Zealand dollar (NZD) buoyed by positive risk flows
The New Zealand dollar (NZD) also appreciated in overnight trade, thanks to the modest uptick in risk sentiment.
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