Australian Dollar (AUD) Strengthens amid US Dollar Weakness
The Australian Dollar (AUD) remained steady during Friday’s session as an upbeat market mood paired with a pullback in the US Dollar bolstered the appeal of AUD.
However, limiting ‘Aussie’ gains before the weekend was a lack of domestic data and ongoing concerns over Australia’s coronavirus resurgence.
The Australian Dollar could be open to losses today if the global market mood sours, though the latest PMI figures from Australia could provide fresh support to the ‘Aussie.’
Pound (GBP) Weakens as Markets Digest Dovish BoE
The Pound (GBP) weakened during Friday’s trading session as a lack of economic data limited the appeal of Sterling.
Moreover, some dovish commentary from the Bank of England’s (BoE) Andrew Bailey earlier in the week limited the potential upside in the Pound.
Pound investors will be hoping today that a positive print in today’s services PMI figures will add much needed support to Sterling sentiment.
Euro (EUR) Weakens Following Dovish ECB Comments
The Euro (EUR) weakened against many of its major rivals during Friday’s European session as dovish commentary from European Central Bank (ECB) President Lagarde limited the appeal of the single currency.
Speaking to a French newspaper Lagarde remarked on the Eurozone’s economic recovery, suggested that ‘while the recovery is now beginning to get under way, it remains fragile.’
Today will see the release of the latest Eurozone PMI figures which could provide some support to the single currency if they confirm growth in the bloc’s service sector struck a 14-year high in June.
US Dollar Weakens Despite Better-Than-Expected Non-Farm Payrolls
The US Dollar (USD) weakened on Friday despite a large than expected rise in non-farm payrolls, which reported that the US economy added 800k jobs during June.
While the headline figures beat expectations, the report also revealed that US unemployment rate edged up to 5.9%, which ultimately dented USD exchange rates.
US markets will be closed for a public holiday today, potentially leading to thin trading conditions in the US dollar.
Canadian Dollar (CAD) Firms Rising Oil Prices
The Canadian Dollar (CAD) firmed during Friday’s session as rising oil prices paired with a weakening US Dollar bolstered the appeal of commodity-correlated ‘Loonie.’
New Zealand Dollar (NZD) Steady on Upbeat Market Mood
The New Zealand Dollar (NZD) found itself steady during Friday’s session as an upbeat market mood added support the ‘Kiwi’s’ appeal.
Data Releases
Jul 5th 09:00 AUD Markit Services PMI Final (Jun) 56
Jul 5th 18:00 EUR Markit Services PMI Final (Jun) 58
Jul 5th 18:30 GBP Markit/CIPS UK Services PMI Final (Jun) 61.7