Pound (GBP) subdued by lack of data
The pound (GBP) traded without strong directional bias on Friday, amid the continued absence of any notable UK economic indicators.
GBP investors also appeared unfazed by UK bond market movement, despite borrowing costs falling back to where they were before the recent turmoil.
John Healey will make his first major speech as Chancellor today, with it focusing heavily on growth. A positive response to his comments could help Sterling get off to a strong start this week.
Euro (EUR) undermined by retail sales slump
The euro (EUR) faced modest selling pressure on Friday, as the latest Eurozone economic data made for mixed reading.
While German factory orders outpaced expectations in July, this was overshadowed by a shock contraction in Eurozone retail sales over the same period.
The euro may remain on the defensive today, after Germany's latest industrial production figures reported a surprise contraction in factory output in July.
US dollar (USD) buoyed by payroll surprise
The US dollar (USD) rallied at the end of last week as the latest US non-farm payroll report showed the US economy added 162,000 jobs in August, substantially outperforming forecasts for a 56,000 increase.
The surprisingly positive data was well received by USD investors as a resilient US labour market is likely to encourage the Federal Reserve to raise interest rates later this month.
Turning to the start of this week, with US markets closed for the long Labor Day weekend, thin trading conditions could limit demand for the US dollar.
Canadian dollar (CAD) slips as domestic labour market shrinks
The Canadian dollar (CAD) stumbled on Friday, after Canada's own jobs data reported an unexpected contraction in employment growth last month.
The focus for CAD investors will likely revert to oil price dynamics at the start of this week, potentially boosting the 'loonie' as uncertainty in the Middle East has triggered a fresh rise in crude prices.
Australian dollar (AUD) buoyed by Chinese stimulus reports
The Australian dollar (AUD) edged higher through Monday's Asian session as reports that Beijing will inject billions into state-owned insurers and banks reflected positively on the China-proxy 'Aussie'.
New Zealand dollar (NZD) muted in cautious trade
The New Zealand dollar (NZD) struggled to attract support in overnight trade as fresh tensions in the Middle East caused investors to limit their exposure to risk-sensitive assets like the 'kiwi'.
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