Pound (GBP) uncertain amid weak GDP
The pound (GBP) struggled to find a clear direction on Friday, with a 0.1% contraction in UK GDP putting some pressure on the currency.
However, Sterling was cushioned by a drop in UK government borrowing costs, which spared GBP from losses.
Sterling may be mixed today, as GBP investors brace for the Bank of England (BoE) decision and the Makerfield by-election on Thursday.
Euro (EUR) unsure as data dries up
The euro (EUR) also traded without a strong directional bias on Friday, with markets seemingly waiting with bated breath to hear more details on a possible peace deal in the Middle East.
A lack of notable Eurozone economic data also left the common currency to trade in a narrow range amid the uncertainty.
The Eurozone’s latest industrial production figures could lend EUR some support today, as markets expect to see a slight improvement in April.
US dollar (USD) moves sideways amid mixed mood
The safe-haven US dollar (USD) wavered at the end of last week amid uncertainty around a possible US-Iran peace deal.
After President Donald Trump claimed that an agreement had been reached and would soon be signed, Iran pushed back and claimed nothing had been finalised.
Turning to today, USD stumbled at the start of this week’s session after the framework for a peace deal was agreed over the weekend. The ‘greenback’ could remain under pressure as the day goes on if a risk-on mood prevails.
Canadian dollar (CAD) stumbles as oil prices ease
The crude-linked Canadian dollar (CAD) fluctuated in tandem with oil prices on Friday, with CAD briefly brushing multi-month lows as crude touched its lowest levels since the first week of the US-Iran war.
The ‘loonie’ has slipped again this week, with CAD hitting a two-month low against EUR and a four-month low against GBP. If oil prices continue to retreat, the Canadian dollar may face further losses.
Australian dollar (AUD) climbs on US-Iran peace deal
The Australian dollar (AUD) rose at the beginning of this week’s session, as the signed US-Iran peace deal boosted demand for the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) buoyed by risk-on mood
The New Zealand dollar (NZD) has also started the week on the front foot, thanks to the improvement in market sentiment.
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