Pound (GBP) shrugs off lacklustre data
The pound (GBP) closed last week’s session on positive footing, with the currency seemingly unfazed by underwhelming UK economic releases.
In addition to a shock contraction in UK retail sales last month, November’s preliminary PMIs pointed to a sharp slowdown of activity in the UK service sector amid the uncertainty posed by Chancellor Rachel Reeves’s upcoming budget.
Said budget is likely to cast a long shadow over the pound this week, with the currency likely to see limited movement ahead of its publication on Wednesday.
Euro (EUR) weakens on ECB Lagarde comments
The euro (EUR) ticked lower on Friday, despite the Eurozone’s latest PMIs pointing to growing momentum in the bloc’s private sector.
This pullback in EUR was linked to remarks from European Central Bank (ECB) President Christine Lagarde, who warned that Europe’s economy is particularly vulnerable to the fracturing of the post-war global consensus.
Germany’s latest business climate index is the only economic release of note today. If business morale in the Eurozone’s largest economy continued to improve this month, it could help underpin a recovery in the euro.
US dollar (USD) dented by dovish Fed remarks
The US dollar (USD) was subdued at the end of last week, following remarks from Federal Reserve policymaker John Williams.
Williams appeared to push back against the recent hawkish Fed narrative, suggesting that current policy remains moderately restrictive and that the US central bank could still cut interest rates in the near term.
US economic releases are in short supply at the start of this week, potentially leaving the US dollar vulnerable to fresh losses amid the current dovish repricing of Fed rate bets.
Canadian dollar (CAD) slides on weak retail data
The Canadian dollar (CAD) stumbled on Friday as Canada’s latest retail sales fell short of forecasts, reporting sales growth stalled in October versus forecasts for a 0.5% rebound.
Coming up, if oil prices continue to fall, the commodity-sensitive ‘loonie’ may extend its losses through the start of this week.
Australian dollar (AUD) flat in mixed trade
The Australian dollar (AUD) traded in a narrow range through Monday’s Asian trading session, amid the absence of any notable domestic data and an uneven market mood.
New Zealand dollar (NZD) sidelined amid slow start to the week
The New Zealand dollar (NZD) was also muted at the start of the week amid quiet trading conditions.
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