Australian Dollar (AUD) Weakens on US Dollar Strength
The Australian Dollar weakened towards the end of Friday’s session as a strengthening US Dollar limited the appeal of the ‘Aussie.’
A lack of notable economic data from Australia and a cautious market mood did nothing to support the risk-correlated Australian Dollar heading into the weekend.
Investors will be keeping an eye on the global market mood heading into this week, more so the Reserve Bank of Australia’s latest meeting minutes could provide much needed support to AUD at the start of the week.
Pound (GBP) Firms on Disappointing UK Retail Sales
The Pound found itself mixed during Friday’s European session as disappointing retail sales from the UK could not push the currency to new highs.
Sterling investors remain concerned over the delta variant of the coronavirus, following the announcement earlier in the week that the UK would remain in lockdown restrictions for a further four weeks.
Heading into this week, Pound traders will be keeping an eye on any further coronavirus developments as well as the latest interest rate decision from the Bank of England (BoE).
Euro (EUR) Weakens on US Dollar Strength
The Euro had weakened at the end of last week as a lack of notable data paired with a resurgence in the US Dollar limited the single currency.
However, a pullback in the US Dollar gave way for the Euro to head higher due to the negative correlation between the pairing.
The start of this week will see the release of preliminary Markit PMI data from the Eurozone and Germany which could support the Euro if they continue to show a sustained economic recovery.
US Dollar Strengthens on Federal Reserve Commentary
The US Dollar had enjoyed a resurgence at the end of last week due to a cautious market mood following the Federal Reserve’s latest economic projections and hawkish stance.
The prospect of earlier-than-expected interest rate hikes has caused markets to become jittery and the US Dollar to surge.
This week will see a quieter week for the ‘Greenback’ though the latest flash Markit PMI’s could give an indication into how the US economy is performing.
Canadian Dollar (CAD) Weakens as Oil Prices Dip
The Canadian Dollar weakened during Friday’s session as oil prices dipped following a sell-out of commodity-correlated currencies like the ‘Loonie.’ This week’s retail sales figures from Canada could cause CAD to suffer further.
New Zealand Dollar (NZD) Weakens on Cautious Market Mood
The New Zealand Dollar (NZD) found itself lower at the end of last week as a resurgence in the US Dollar caused the ‘Kiwi’ to suffer.