The pound ticked slightly higher against some of its peers at the start of this week’s session, but failed to record lasting gains.
Both AUD and NZD were hit by weakened risk appetite at the start of last week as Donald Trump’s decision to pull out of the Iranian nuclear deal spooked markets.
In terms of economic data the Australian dollar was also weakened as April’s retail report revealed domestic retail sales remained flat last month.
The New Zealand dollar meanwhile faced heavy losses last week as the Reserve Bank of New Zealand (RBNZ) held its latest policy meeting.
While the bank’s decision to leave rates on hold came as no surprise, markets turned on the ‘Kiwi’ last week as the RBNZ hinted its next move could as easily be a rate cut as it could be a rate hike.
However both currencies were able to claw back some of these losses at the tail end of the week as the drop in the US dollar and rising commodity prices helped to reignite market risk appetite.
Looking ahead the Australian dollar could tick higher this week if the latest labour report impresses, although any gains could be offset as economists forecast Australia’s first quarter wage price index may disappoint.
Meanwhile the New Zealand dollar may tumble this week if dairy prices slide again following the latest global dairy auction.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)