Australian Dollar (AUD) Loses Ground on Sour Market Mood
The Australian Dollar (AUD) found itself weakening before the weekend as a sour market mood and lack of economic data from Australia offered limited support to the ‘Aussie’.
A disappointing end to the week for the Australian Dollar saw the currency face additional headwinds in response to domestic coronavirus developments, it comes as Sydney deployed military help to help enforce lockdown measures on Friday.
The start of this week will see the release of the latest manufacturing PMI from Australia which is forecast to have softened to 56.8, as the coronavirus outbreak halts the country’s economic recovery.
Pound (GBP) Steady on Positive UK Coronavirus Developments
The Pound (GBP) remained steady on Friday as positive coronavirus developments from the UK keep Sterling broadly appealing.
The continued decline in coronavirus cases continued to underpin GBP exchange rates, though an absence of economic data from the UK capped any major gains.
This afternoon the Markit manufacturing PMI from the UK is expected to give an insight into how the sector is performing as the country gets used to life without restrictions.
Euro (EUR) Volatile on Flash GDP Figures from the Eurozone
The Euro traded in a mixed range throughout Friday’s session as preliminary GDP figures divided investors.
Whilst Eurozone GDP rebounded more than forecast, German GDP figures missed expectations. Printing at 1.5% versus 2% forecasts, worrying investors that the recovery in the Eurozone’s largest economy may be slowing.
This evening will see the release of the most recent Eurozone manufacturing PMI as well as German retail sales figures which are expected to be the main catalyst for movement for EUR exchange rates today.
US Dollar (USD) Supported by Better-Than-Expected US Personal Spending
The US Dollar (USD) found itself supported on the back of a rise in US personal spending alongside a weakening market mood on Friday.
US personal spending figures rose to 1% during June, recovering from the -0.1% the previous month as an increase in pharmaceutical spending drove buoyed consumer consumption.
Overnight, the ISM manufacturing PMI from the US could drive the ‘Greenback’ higher if the figures show a sustained growth in the US factory sector.
Canadian Dollar (CAD) Strengthens on Uptick in Oil Prices
Heading into the weekend the Canadian Dollar (CAD) remained broadly appealing on the back of rising oil prices, disappointing GDP figures from Canada were largely ignored by markets.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) struggled during Friday’s session as risk-off trade limited the appeal of the risk-correlated ‘Kiwi’.
Data Releases
2nd Aug 09:00 AUD Manufacturing PMI (Jul) 56.8
2nd Aug 16:00 EUR DE Retail Sales (Jun) 2%
2nd Aug 17:00 EUR Manufacturing PMI Final (Jul) 62.6
2nd Aug 18:30 GBP Manufacturing PMI (Jul) 60.4
3rd Aug 00:00 USD ISM Manufacturing PMI (Jul) 60.8