Pound (GBP) mixed following dire sales
The pound (GBP) initially ticked higher on Friday, despite some dire retail data from the UK. British sales slumped 2.7% in May, far worse than the forecast 0.5% fall.
However, GBP retreated in the afternoon against its stronger rivals.
The UK’s own PMIs for June are the focus for GBP investors today. If service sector activity improves as expected, the pound could enjoy tailwinds.
Euro (EUR) capped by softer German PPI
The euro (EUR) was initially subdued at the end of last week’s session, as a sharp drop in German producer price inflation stifled EUR’s potential.
The common currency was then able to strengthen in the afternoon, however, with EUR rising despite a worse-than-forecast consumer confidence reading.
Eurozone private sector activity is expected to have remained weak in June, with the latest PMI results potentially weighing on EUR.
US dollar (USD) unsure as Trump mulls Iran strikes
The US dollar (USD) was initially muted on Friday before bouncing back in the afternoon as markets responded to Donald Trump’s two-week delay to his decision on whether or not to strike Iran.
The safe-haven ‘greenback’ had fallen as risk appetite improved in the wake of the comments. However, when US markets opened, the currency was able to bounce back as USD investors cheered the news.
The S&P Global PMI results due out this afternoon are less impactful than the ISM surveys but could still influence USD, with an expected slowdown in business activity possibly denting the ‘greenback’.
Canadian dollar (CAD) falls in tandem with oil
The crude-linked Canadian dollar (CAD) fell on Friday as hopes of a de-escalation in the Israel-Iran conflict led to a steep drop in oil prices.
Despite the US bombing Iran over the weekend, oil prices have not surged today, with analysts saying Iran may not be able to close the Strait of Hormuz – a key waterway for oil tankers. As a result, CAD could remain muted.
Australian dollar (AUD) slides despite positive PMIs
The Australian dollar (AUD) dropped as this week’s session began, despite better-than-expected PMI results, with risk aversion sweeping markets following US strikes on Iran over the weekend.
New Zealand dollar (NZD) declines amid risk aversion
The New Zealand dollar (NZD) also fell overnight as market anxiety saw investors avoid the risk-sensitive ‘kiwi’.
