Australian Dollar (AUD) Slips as Sentiment Softens
The Australian Dollar (AUD) initially trended higher on Friday, with the risk-sensitive currency benefitting from a modest improvement in market sentiment.
However, the ‘Aussie’ then failed to sustain these gains, drifting lower through the end of the European trading session as the mood began to sour somewhat.
Coming up in the first half of this week’s session will be the publication of the minutes from the Reserve Bank of Australia’s (RBA) June policy meeting, with the ‘Aussie’ potentially suffering if they strike a dovish tone.
Pound (GBP) Subdued on Coronavirus Warning
The Pound (GBP) struggled to attract support on Friday, amidst ongoing concerns over the UK’s coronavirus situation.
This was triggered by comments from England’s chief medical officer, Prof Chris Whitty, who warned that coronavirus hospitalisations could reach ‘scary numbers’ in the coming months, after daily cases rose to nearly 50,000.
While the lifting of nearly all remaining coronavirus restrictions could help to underpin GBP exchange rates at the start of this week, the upside in Sterling could be stifled somewhat amidst doubts over the sustainability of the reopening.
Euro (EUR) Flat as Eurozone Inflation Meets Expectations
The Euro (EUR) was mostly rangebound at the end of last week’s session, after the Eurozone’s consumer price index printed in line with expectations.
EUR investors were also reluctant to make any aggressive bets on the Euro amidst ongoing concerns over the spread of the Delta variant of the coronavirus throughout Europe.
In the spotlight this week will be the conclusion of the European Central Bank’s (ECB) July policy meeting, which could infuse some volatility into the Euro amidst speculation the bank will alter its forward guidance, in light of its new inflation target.
US Dollar (USD) Firms as Retail Sales Impress
The US Dollar (USD) traded with modest gains at the end of last week, as USD investors welcomed data showing a surprise expansion of US retail sales growth last month.
Limiting this upside however, was the subsequent release of the University of Michigan’s latest US consumer sentiment index, which reported consumer morale slipped to a five-month low in July.
Turning to this week’s session, with US data releases thin on the ground, it’s likely the direction of the US Dollar will likely be determined by market sentiment. Will the prevalence of a risk-off mood help to propel USD exchange rates higher?
Canadian Dollar (CAD) Buoyed by Modest Rebound in Oil Prices
The Canadian Dollar (CAD) edged higher at the end of last week’s session, as a modest uptick in WTI crude prices helped to boost the appeal of the oil-sensitive ‘Loonie’.
New Zealand Dollar (NZD) Fluctuates amidst Mixed Market Mood
The New Zealand Dollar (NZD) fluctuated through Friday’s trading session, with the risk-sensitive ‘Kiwi’ unable to find any solid footing amidst the mixed market mood.
Data Releases
Jul 19th 20:00 GBP BoE Haskel Speech