Pound (GBP) recovers post-GDP losses
The pound (GBP) attracted modest support at the end of last week, with the currency able to claw back a portion of Thursday’s losses.
This rebound suggested the selloff that followed November’s stronger-than-expected GDP figures had been overzealous.
In the continued absence of any UK economic data of note, movement in the pound is likely to be limited today, particularly as GBP investors brace for some high-impact releases later in the week.
Euro (EUR) sidelined by Greenland rhetoric
The euro (EUR) was flat through Friday’s trading session, with the single currency continuing to face resistance as a result of fresh US rhetoric on Greenland.
Speaking to Fox News, Jeff Landry, US special envoy to Greenland, said US President Donald Trump is ‘serious’ about controlling Greenland and that a ‘deal should and will be made’.
Trump followed this up over the weekend by threatening to impose fresh tariffs on several European nations that oppose the US purchase of Greenland, a move that could inject volatility into the euro at the start of this week.
US dollar (USD) dented by positive risk flows
The US dollar (USD) ticked lower at the end of last week, as a modest improvement in risk appetite sapped safe-haven demand.
However, the downside remained limited as the latest US industrial production figures outpaced forecasts.
Turning to the start of this week, the US dollar appears vulnerable, with USD investors unsettled by President Trump’s latest tariff threat.
Canadian dollar (CAD) underpinned by rebound in oil prices
The Canadian dollar (CAD) held steady on Friday as a rebound in oil prices helped to offset fresh concerns about Canada’s increasingly dour trade relationship with its closer neighbour, the US.
Canada will publish its latest CPI figures later today. Economists predict a modest cooling of inflation in December, but with this unlikely to shift the Bank of Canada’s (BoC) thinking on interest rates, the impact on CAD exchange rates may be negligible.
Australian dollar (AUD) buoyed by upbeat Chinese data
The Australian dollar (AUD) trended higher through Monday’s Asian trading session, as Australia’s trade ties with China saw it benefit from stronger-than-expected Chinese GDP and industrial production figures.
New Zealand dollar (NZD) bolstered by risk-on trade
The New Zealand dollar (NZD) also firmed in overnight trade as China’s growth figures buoyed market risk appetite
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