Australian Dollar (AUD) Falls as Market Mood Sours
A cautious market mood prompted a downturn in the risk-sensitive Australian Dollar (UAD) at the end of last week.
Mixed PMI figures failed to aid the currency. Although the services sector unexpectedly expanded, factory activity contracted.
AUD could fall further if the market mood remains risk-off today.
New Zealand Dollar (NZD) Slips amid Risk-Off Mood
The New Zealand Dollar (NZD) was pulled lower by a retreat in global risk appetite on Friday.
NZD’s correlation to the Australian Dollar also weighed on the ‘Kiwi’, as did a downbeat mood in the commodity markets.
Today could bring additional losses for the ‘Kiwi’ if risk aversion persists.
Pound (GBP) Loses Ground as Retail Sector Suffers
The Pound (GBP) came under pressure on Friday after a greater-than-forecast slump in March’s retail sales. The figures printed a 0.9% dip versus the forecast 0.5% decrease.
Sterling’s losses deepened as the day went on, although a strong services PMI may have stopped the Pound from falling even lower.
With a sparse data calendar for Sterling today, the currency could be affected by expectations of further policy tightening from the Bank of England (BoE). Markets have continued to price in a 25bps hike from the BoE.
Euro (EUR) Boosted by Upbeat Service Sector Data
A cautious market mood pushed the Euro (EUR) higher on Friday. Market bets on further interest rate increases from the European Central Bank (ECB) also lent support to EUR.
The single currency was also propped up above-forecast growth in the Eurozone services sector.
The Euro could firm over the course of today if German business confidence improves as expected. The reading would be the sixth consecutive month of improvement.
US Dollar (USD) Bolstered by Private Sector Rebound
A risk-off mood inspired gains in the safe-haven US Dollar (USD) on Friday. Federal Reserve rate hike bets also bolstered the ‘Greenback’ at the end of last week.
Upbeat private sector PMIs for April provided an additional boost to USD. Manufacturing and service-sector performance unexpectedly improved.
US economic data is in short supply today, so risk appetite could drive most movement in the ‘Greenback’.
Canadian Dollar (CAD) Dented by Retail Sales Drop
The commodity-linked Canadian Dollar (CAD) lost ground on Friday after a larger-than-forecast dip in February’s retail sales. However, the commodity-linked ‘Loonie’ found support from an uptick in crude oil prices, limiting losses.
CAD could regain lost ground if oil prices continue to improve today.
Data Releases
Apr 24th 18:00 , EUR , German Ifo Business Climate (Apr) , 93.4