Australian Dollar (AUD) Strengthens amid US Dollar Weakness
The Australian Dollar (AUD) remained steady during Friday’s session as the upbeat market mood, paired with a further pullback in the US Dollar bolstered the appeal of AUD.
However, somewhat tempering the ‘Aussie’s gains were ongoing concerns over the coronavirus situation in Sydney.
The Australian Dollar could be open to losses today if the global market mood sours and the US Dollar finds itself newly supported.
Pound (GBP) Weakens as Markets Digest Dovish BoE
The Pound (GBP) weakened during Friday’s trading session as the dovish commentary from the (BoE) the day previous continued to limit Sterling.
More so, a lack of economic data before the weekend did nothing to support the Pound as even positive coronavirus developments surrounding international travel couldn’t provide any support.
Turning to this week’s session Pound investors are likely to be wary of UK coronavirus headlines, as rising cases could threaten the government’s revised reopening date.
Euro (EUR) Supported by German GfK Consumer Confidence
The Euro (EUR) was supported against many of its major rivals during Friday’s European session as the latest German GfK consumer confidence index strengthened the single currency.
German consumer morale improved more than expected, with the index rising to -0.3 for July as consumers become more optimistic amidst the reopening on the German economy.
Looking ahead, the focus for EUR investors at the start of this week will be Germany’s consumer price index. While inflation is expected to remain above 2%, the European Central Bank’s (ECB) reluctance to tighten its monetary policy could limit the potential upside in the Euro.
US Dollar Weakens in Risk-On Trade
The US Dollar (USD) remained on the back foot through the end of last week’s session as demand for the safe-haven currency was undermined by a prevailing risk-on mood.
Further undermining USD exchange rates was the latest PCE price index, with the Federal Reserve’s preferred indicator for inflation printing below expectations in May.
The start of this economic week will be quiet in terms of US data, potentially leading to further losses in the US Dollar if the upbeat mood persists.
Canadian Dollar (CAD) Strengthens as Oil Prices Soar
The Canadian Dollar (CAD) rallied at the end of last week, with the commodity-linked ‘Loonie’ rising in tandem with oil prices as WTI crude prices climbed to their highest levels since October 2018.
New Zealand Dollar (NZD) Firms amid Upbeat Market Mood
The New Zealand Dollar (NZD) firmed through Friday’s trading session as an upbeat market mood continued to boost the appeal of the risk-sensitive ‘Kiwi’.