Pound (GBP) ticks lower amid profit-taking
The pound (GBP) struggled to attract support at the end of last week, amid a lull in notable UK economic releases.
This left some GBP investors to book profits as the session came to a close, exerting downward pressure on Sterling.
This morning, the UK released its latest GDP figures. The final estimate for the first quarter confirmed a 0.7% expansion of growth, which may lend some modest support to Sterling today.
Euro (EUR) buoyed by EU-US trade deal optimism
The euro (EUR) rallied on Friday, amid growing confidence that the EU and US are close to reaching a trade deal.
This helped to offset the Eurozone’s latest economic sentiment index, following a surprise drop in confidence this month.
Germany will publish its latest consumer price index later today. June’s preliminary figures are expected to report a modest acceleration in inflation, potentially tempering bets on European Central Bank (ECB) interest rate cuts and lifting the euro.
US dollar (USD) fluctuates amid trade deal hopes
Trade in the US dollar (USD) was mixed at the end of last week. Reports that Washington and Beijing have signed a trade agreement and that the US is close to signing several more trade deals initially helped underpin the ‘greenback’ on Friday.
However, these gains were tested later in the session after a shock fall in US personal incomes and spending spooked USD investors.
Looking ahead, USD investors are likely to remain focused on trade deal developments, as we enter the last full week until US President Donald Trump’s tariff pause expires.
Canadian dollar (CAD) weakens as GDP contracts
The Canadian dollar (CAD) ticked lower on Friday, pressured by weaker-than-expected GDP data, which reported the Canadian economy contracted through April and May.
Notable Canadian data is in short supply today, which is likely to leave the movement of the ‘loonie’ to be driven by oil price dynamics.
Australian dollar (AUD) buoyed by positive Chinese PMIs
The Australian dollar (AUD) edged higher through today’s Asian trading session in response to stronger-than-expected PMI figures from China.
New Zealand dollar (NZD) bolstered by improving business confidence
The New Zealand dollar (NZD) rallied in overnight trade, following a sharp improvement in domestic business confidence this month.
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