Pound (GBP) muted as UK consumer spending slumps
The pound (GBP) struggled to attract support at the end of last week as the UK reported a sizable contraction in retail sales in July, despite the positive impact of the World Cup and the warmer weather.
Sterling sentiment was further suppressed by the UK's latest borrowing figures, after they showed the government ran a surprise deficit last month.
Notable UK economic data dries up this week, which may leave the pound to trade without strong directional bias through the start of the session.
Euro (EUR) sidelined by positive risk flows
The euro (EUR) was muted through Friday's session as an improvement in risk appetite weakened the single currency's safe-haven appeal.
This left the euro unable to advance, despite the Eurozone's latest PMIs reporting a surprise uptick in growth in the bloc's private sector this month.
Eurozone data is in short supply today, which may leave the euro to remain in a narrow range through the start of the week.
US dollar (USD) continues to be punished by Treasury buybacks
The US dollar (USD) slipped to fresh multi-month lows at the end of last week as the recent USD selling bias remained firmly in place.
While the latest US PMIs surprised to the upside, this failed to assuage ongoing concerns over the US Treasury's new bond buyback operation.
In the absence of any fresh impetus for movement, will US debt concerns extend the USD selloff today?
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) ticked higher on Friday, with the commodity-linked currency catching bids as rising oil prices helped to offset weaker-than-expected domestic retail sales data.
Expect the 'loonie' to face notable headwinds today, after the US imposed new 50% tariffs on Canadian goods following a breakdown of trade talks just before the weekend.
Australian dollar (AUD) muted in downbeat trade
The Australian dollar (AUD) struggled to find support through Monday's Asian trading session as the uncertainty posed by the US-Canadian trade war limited the appeal of risk-sensitive assets.
New Zealand dollar (NZD) rangebound as investors turn cautious
The New Zealand dollar (NZD) was also subdued in overnight trade as market risk appetite faltered.
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