Pound (GBP) mixed in directionless trade
The pound's (GBP) performance remained inconsistent on Friday amid the continued absence of any guiding data.
This left Sterling broadly weaker, with the currency unable to put up much of a fight against its stronger peers.
Turning to the start of this week, movement in the pound may be limited, with GBP investors reluctant to alter their positions in the currency amid lingering uncertainty over the Bank of England's (BoE) upcoming interest rate decision.
Euro (EUR) lifted by robust inflation print
The euro (EUR) was able to claw back some of its recent losses at the end of last week as a stronger-than-expected Eurozone inflation print helped to temper European Central Bank (ECB) rate cut bets.
The single currency's strong negative correlation with the US dollar (USD) also provided a boost amid a sharp pullback in USD exchange rates on Friday.
Looking ahead, with Eurozone economic releases in short supply, the euro may struggle for direction today.
US dollar (USD) plummets on payrolls disappointment
The US dollar's recent bullish run came to a stunning end on Friday, after the latest non-farm payroll report revealed the US economy only added 73,000 jobs in July, below the 110,000 forecast, while payrolls in June were revised down from 147,000 to just 14,000.
The apparent collapse in the US labour market placed significant selling pressure on the US Dollar as it revived bets the Federal Reserve might cut interest rates in September.
Meanwhile, US President Donald Trump’s decision to fire the head of the US Bureau of Labor Statistics (BLS) in response to the lacklustre payroll figures may continue to cool markets on the US dollar today.
Canadian dollar (CAD) undermined by tariff jitters
The Canadian dollar (CAD) closed last week's session on a sour note, after Trump signed a new order raising US tariffs on Canadian goods to 35%.
Ongoing concerns over the impact of these tariffs may continue to hamper the 'loonie' through the start of this week's session
Australian dollar (AUD) supported by tariff relief
The Australian dollar (AUD) ticked higher at the start of this week, supported by continued relief that Australia was excluded from the latest round of US tariffs.
New Zealand dollar (NZD) subdued in risk-averse trade
The New Zealand dollar (NZD) traded sideways overnight on Sunday, with a cautious market mood limiting demand for the ‘kiwi’.
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