Pound (GBP) muted on mixed retail sales
The pound (GBP) remained largely subdued on Friday following the uneven UK retail sales data released by the Office for National Statistics (ONS).
While sales growth beat expectations to rise 0.6% in July, downward revisions to historical data through the first half of 2025 raised fresh concern over the UK’s economic trajectory as well as the accuracy of ONS data.
UK economic releases are thin on the ground at the start of this week, which may leave the pound at the mercy of wider market trends.
Euro (EUR) undermined by lacklustre German industrial data
The euro (EUR) faced headwinds on Friday after Germany reported a startling 2.9% drop in factory orders in July.
However, the resulting weakness in the single currency was modest, as the euro was simultaneously strengthened by its negative correlation with the US dollar (USD).
Germany released its latest industrial production figures this morning, with a strong rebound in factory output potentially lending some support to the euro through today’s session.
US dollar (USD) plummets on abysmal payroll report
The US dollar came under significant selling pressure at the end of last week on the back of a dire US payroll report.
Friday’s data reported the US economy added just 22,000 jobs in August, stoking bets for at least 75 basis points of easing from the Federal Reserve by the end of the year.
With US data in short supply, USD investors will be left to digest Friday’s payroll print, potentially exposing the US dollar to further losses amid ongoing Fed rate cut speculation.
Canadian dollar (CAD) slides on weak jobs data
The Canadian dollar (CAD) also slumped on Friday as Canada’s own jobs data reported unemployment jumped to a four-year high last month.
In the absence of any notable CAD data, movement in the ‘loonie’ may be primarily driven by oil price dynamics today. If prices continue to soften, the Canadian dollar may stumble.
Australian dollar (AUD) buoyed by positive risk appetite
The Australian dollar (AUD) is off to a positive start this week as continued weakness in the US dollar helps to bolster demand for high-yielding assets like the ‘Aussie'.
New Zealand dollar (NZD) strengthens in upbeat trade
The New Zealand dollar (NZD) also firmed overnight as it benefited from the same positive risk flows during the Asian trading session.
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