Pound (GBP) sidelined by lack of data
The pound (GBP) was left adrift again at the end of last week amid the continued absence of any notable UK economic data.
Sterling also struggled to attract support as concerns over the ratification of a UK-US trade deal undermined recent UK economic optimism.
Expect Sterling to remain directionless at the start of this week as GBP investors await the release of the UK’s latest jobs figures on Tuesday.
Euro (EUR) pressured by USD strength
The euro (EUR) stumbled on Friday as it was undermined by its strong negative correlation with the US dollar (USD).
This dip in the single currency also came despite Eurozone GDP being revised higher in the first quarter.
With Eurozone data in short supply at the start of this week, EUR investors may turn their focus to ongoing EU-US trade talks. Any signs of progress could help to underpin the single currency.
US dollar (USD) climbs on mixed payrolls data
The US dollar closed last week’s session on a positive note, after the latest US non-farm payroll report revealed the US economy added more jobs than expected last month.
While prior readings were revised lower, with 95,000 fewer jobs being added through March and April, May’s figures helped to further temper Federal Reserve interest rate cut bets.
Turning to the start of this week, the US dollar could continue to catch bids, depending on the progress made in US-China trade talks taking place in London today.
Canadian dollar (CAD) buoyed by uptick in employment growth
The Canadian dollar (CAD) trended higher on Friday, after Canada’s own jobs data surprised to the upside, reporting that employment grew by almost 9,000 against forecasts for a 15,000 deficit.
Looking ahead, the commodity-linked ‘loonie’ may continue to appreciate at the start of this week if the recent oil price rally persists.
Australian dollar (AUD) buoyed by trade talk hopes
The Australian dollar (AUD) is off to a positive start so far this week, with the currency strengthening through Monday’s Asian trading session amid the optimism surrounding US-China trade talks.
New Zealand dollar (NZD) firms amid cautiously optimistic mood
The New Zealand dollar (NZD) also firmed in overnight trade as the upcoming US-China trade talks helped to bolster market risk appetite.
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