Australian Dollar (AUD) Bolstered by Rising Commodity Prices
The Australian Dollar (AUD) initially shot higher on Friday, with the currency drawing notable support amidst a sharp uptick in commodity prices.
However, the ‘Aussie’ then relinquished a good portion of these gains during European trading hours as a bearish market mood prevailed.
Looking ahead to the first half of this week, AUD exchange rates may strengthen if Australia’s latest retail sales release impresses.
New Zealand Dollar (NZD) Wavers on Lack of Data
The New Zealand Dollar (NZD) largely mirrored the movement of the Australian Dollar at the end of last week, initially firming before running afoul of a souring market mood.
In the absence of any notable NZD data the ‘Kiwi’ is likely to remain primarily driven by risk appetite at the start of this week. Could a risk-off mood drive NZD exchange rates lower?
Pound (GBP) Muted on Underwhelming Retail Sales Release
The Pound (GBP) was left mostly rangebound on Friday, after the UK’s latest retail sales figures reported a shock contraction of sales growth last month.
The surprise slump stoked concerns that the UK’s cost-of-living crisis could already be taking its toll on consumer spending.
A lull in UK data at the start of this week is likely to see the direction of the Pound determined by the war in Ukraine, with Sterling potentially weakening if the situation continues to deteriorate.
Euro (EUR) Stumbles as German Business Morale Plummets
The Euro (EUR) trended lower at the end of last week’s session, with the currency being undermined by the publication of Germany’s Ifo business climate index.
March’s index reported a larger-than-expected decline in business morale, with the war in Ukraine unsurprisingly spooking many firms.
Turning to this week’s session the focus for EUR investors will be on the Eurozone’s consumer price index. Will another jump in inflation be seen as placing more pressure on the European Central Bank (ECB) to tighten its monetary policy and boost the Euro in the process?
US Dollar (USD) Buoyed by Fed Rate Hike Speculation
The US Dollar (USD) ticked higher through some of Friday’s trading session, bolster by Federal Reserve rate hike bets. Analysts now see the Fed raising rates by up to 200 basis points this year, expectations for which helped to propel US Treasury yields higher.
However, the US dollar the stumbled at the finish line, after March’s consumer sentiment index was revised even lower.
Looking ahead, the US Dollar could strengthen through the first half of this week if the ongoing crisis in Ukraine continues to dampen market risk appetite.
Canadian Dollar (CAD) Firms despite Weaker Oil Prices
The Canadian Dollar (CAD) ticked higher at the end of the last week’s session, with the currency seemingly unfazed by a pullback in oil prices.
However, will the ‘Loonie’ be able to maintain this resilience if prices continue to drop at the start of this week?
Data Releases
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