Pound (GBP) slides as UK economy contracts
The pound (GBP) ended last week on a sour note, in response to lacklustre UK growth figures.
The UK’s latest GDP figures revived concerns over the country’s economic trajectory, after reporting a surprise 0.1% contraction at the start of the year.
UK economic releases are in short supply today, which may leave the pound adrift with no clear directional bias.
Euro (EUR) buoyed by USD weakness
The euro (EUR) trended broadly higher on Friday, supported by its strong negative correlation with the US dollar (USD).
However, the upside in the single currency remained limited in scope, amid ongoing fears over transatlantic trade tensions.
In the absence of any notable Eurozone data, we may see movement in the euro driven by transatlantic trade tensions today. If the EU-US trade war continues to escalate, it's likely the single currency will move lower.
US dollar (USD) pressured by decline in US consumer sentiment
The US dollar softened at the end of last week after the University of Michigan’s latest US consumer sentiment index reported a sharp decline in morale.
With recent US recession fears being driven in large part by drops in US consumer confidence, the figures weighed heavily on USD exchange rates.
The start of this week sees the publication of the latest US retail sales figures. Any signs of weakness in consumer spending last month could stoke US recession fears, dragging the US dollar lower today.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) traded with modest gains on Friday as the commodity-linked currency was underpinned by an uptick in crude prices.
Looking ahead, it’s likely we will see oil price dynamics and tariff uncertainty continue to drive movement in the ‘loonie’ at the start of this week.
Australian dollar (AUD) buoyed by Chinese stimulus hopes
The Australian dollar (AUD) ticked higher at the start of this week as it was bolstered by the optimism surrounding China’s new stimulus measures.
New Zealand dollar (NZD) underpinned by risk-on flows
The New Zealand dollar (NZD) also appreciated through today’s Asian trading session amid a prevailing risk-positive mood.
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