Pound (GBP) muted in quiet trade
The pound (GBP) was confined to a narrow range on Thursday amid the absence of any notable UK economic indicators.
Movement in the UK bond market was also largely flat, further limiting trade impetus for Sterling.
UK data remains thin on the ground today, which may leave the pound directionless through the remainder of the week.
Euro (EUR) gains capped by weak retail sales
The euro (EUR) strengthened on Thursday, supported by its strong negative correlation with the US dollar (USD).
However, the single currency’s gains remained modest as a result of weaker-than-forecast Eurozone retail sales data.
Coming up, the Eurozone’s latest GDP figures are expected to confirm that growth in the bloc slowed to a crawl in the first quarter of the year and could limit the euro’s upside potential today.
US dollar (USD) slips as risk sentiment improves
The US dollar stumbled yesterday as a positive shift in risk appetite limited demand for the safe-haven currency.
Investors turned cautiously optimistic on hopes that a new ceasefire agreement between Israel and Lebanon could help to kick-start wider US-Iran peace negotiations.
In the spotlight today will be the latest US payroll print. Continued resilience in the US labour market last month is likely to boost hawkish Federal Reserve bets and could see the US dollar end the week on a high note.
Canadian dollar (CAD) tracks oil prices lower
The Canadian dollar (CAD) retreated on Thursday as a softening of oil prices limited the appeal of the commodity-linked currency.
Canada will also publish its latest jobs report today, with the ‘loonie’ poised to weaken if the labour market continued to slow last month.
Australian dollar (AUD) weakens in cautious trade
The Australian dollar (AUD) retreated through Friday’s Asian trading session as a souring market mood weakened demand for the risk-sensitive currency.
New Zealand dollar (NZD) dented by risk-off flows
The New Zealand dollar (NZD) also struggled in overnight trade as investors turned cautious.
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