Pound (GBP) dented by downbeat sales figures
The pound (GBP) softened at the end of last week’s session as new UK retail sales data undermined the currency.
British sales growth contracted 0.4% in February. Although this wasn’t as bad as the 0.7% decline forecast, it still stoked concerns about the health of the country’s economy before the war in Iran.
Sterling may struggle to find a clear direction today as UK economic releases are thin on the ground.
Euro (EUR) suffers from stronger USD
The euro (EUR) struggled on Friday as the currency’s strong negative correlation with the US dollar (USD) weighed on EUR demand.
A lack of Eurozone economic data left the currency defenceless, leading EUR to soften.
An expected decline in Eurozone economic sentiment in March could weigh on the euro this morning. However, a sharp rise in German inflation later on could provide EUR with support.
US dollar (USD) capped by weak consumer sentiment
The US dollar rose on Friday as the mood remained risk-off, despite US President Donald Trump trying to soothe markets by delaying attacks on Iran.
However, USD faced some pressure in later trade after the final consumer sentiment index for March showed a deeper-than-expected decline in morale.
With US data thin on the ground today, market risk appetite may be the key catalyst for USD. Ongoing anxiety around the Middle East conflict could support the ‘greenback’.
Canadian dollar (CAD) mixed despite rising oil
The crude-linked Canadian dollar (CAD) moved without a clear direction on Friday. While rising oil prices lent CAD support, the currency was unable to push higher against many of its peers.
Turning to today, CAD could remain sensitive to energy market movements. If crude prices continue to climb, the Canadian dollar may enjoy tailwinds.
Australian dollar (AUD) stumbles amid escalation fears
The Australian dollar (AUD) slipped as this week’s session opened, with concerns about a possible escalation in the US-Iran war dampening market risk appetite.
New Zealand dollar (NZD) slips amid cautious trade
Likewise, the New Zealand dollar (NZD) faltered as a souring market mood dented demand for the ‘kiwi’.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
