Australian Dollar (AUD) Recovers from 6-Month Slump
The Australian Dollar (AUD) found itself heading higher during Friday’s session as a recovery in risk sentiment strengthened the appeal of the ‘Aussie’.
More so, the People’s Bank of China’s (PBOC) decision to cut its Reserve Ratio Requirement (RRR) offered further support to the Australian Dollar’s recovery before the weekend.
The Australian Dollar could be heading higher today if the global market mood continues to improve, driving investors towards the risk-correlated currency.
Pound (GBP) Heads Higher on UK Economic Growth Data
The Pound (GBP) strengthened at the end of last week following the publication of the UK’s latest monthly GDP release.
Despite economic growth slowing to 0.8% during May, when much of the UK reopened from lockdown restrictions, the figures indicated a sustained recovery from the coronavirus pandemic.
Boris Johnson is expected to announce the UK government’s final decision regarding the 19 July reopening today, with the Pound potentially strengthening if the Prime Minister gives the go ahead to lift all remaining coronavirus restrictions in England.
Euro (EUR) Supported Following ECB Monetary Policy Meeting Accounts
The Euro (EUR) was supported against many of its major rivals during Friday’s European session following the release of the European Central Bank’s (ECB) monetary policy meeting accounts.
The accounts noted that some ECB members favoured reducing the pace of asset purchases, although they also agreed to continue to look past the current temporary pick-up in inflation.
Euro investors will be looking towards CPI figures from Germany today which could put some pressure on the single currency if the figures confirm inflation in the Eurozone’s largest economy softened to 2.3% during June.
US Dollar (USD) Dips as Risk Sentiment Improves
The US Dollar (USD) dipped against many of its major rivals at the end of last week as a lack of economic data paired with a pullback in US treasury yields undermined support for the ‘Greenback’.
As risk sentiment improved on Friday, an absence of economic data also left the US Dollar with little support.
An absence of any notable data from the US will see investors keeping an eye on the global market mood today, a further improvement in risk sentiment could cause the US Dollar to struggle.
Canadian Dollar (CAD) Supported on back of Positive Employment Change Figures
The Canadian Dollar (CAD) found itself supported during Friday’s session as better-than-expected employment figures from Canada bolstered the appeal of the ‘Loonie’.
A lack of economic data from Canada could today leave the Canadian Dollar open to losses during the start of this week’s session, unless the recent pick-up in oil prices is sustained.
New Zealand Dollar (NZD) Supported by Risk-On Trade
The New Zealand Dollar (NZD) found itself supported at the end of last week as a more upbeat market mood supported ‘Kiwi’ sentiment.
Data Releases
Jul 12th 08:45 NZD Electronic Retail Card Spending MoM (Jun) 1.1%
Jul 13th 01:00 USD Consumer Inflation Expectations (Jun) 4.1%