Australian Dollar (AUD) Slumps as Market Mood Sours
Last Friday, the Australian Dollar (AUD) initially came under pressure following mixed private sector index releases.
This weakness was then compounded by a souring market mood over the session. With most major territories seeing downbeat PMI data, fears of a global recession sparked widespread risk aversion.
During today’s session, the ‘Aussie’ could want for clear direction, as macroeconomic data appears thin on the ground.
New Zealand Dollar (NZD) Slides amid Bearish Trade
The New Zealand Dollar (NZD) slipped during Friday’s session, as the risk-sensitive ‘Kiwi’ was similarly struck by the downbeat market mood.
This was further compounded by a lack of impactful data, leaving NZD unable to find opportunities to recover.
Today, the ‘Kiwi’ could trade in tandem with the ‘Aussie’, due to another light data calendar.
Pound (GBP) Uncertain following Mixed Data
The Pound (GBP) initially found strength at the end of last week after a surprise rise in UK retail sales boosted GBP.
However, weaker-than-forecast PMI surveys followed. This saw Sterling trim gains against weaker peers and struggle elsewhere.
Aside from the latest Confederation of British Industry (CBI) report, there’s little on the cards in terms of economic data today. Therefore, Sterling could be left vulnerable to shifts in risk appetite.
Euro (EUR) Falls amid Downbeat PMIs
Owing to a dismal showing from the Eurozone private sector indexes, the Euro (EUR) weakened against most major peers on Friday.
While June’s service sector activity held in expansion territory, a sharp retreat from May’s levels served to spark recession anxieties.
This evening, a fall in the German Ifo business climate index for June could weaken the Euro, as it may indicate growing pessimism.
US Dollar (USD) Climbs as Global Recession Fears Increase
Over last Friday’s session, the US Dollar (USD) strengthened as the market mood soured, bringing safe-haven flows to the ‘Greenback’.
However, these gains may have been tempered by a mixed set of PMI reports. June’s activity showed a further-than-expected contraction in manufacturing, but a smaller slowdown than expected in the services sector.
Amid a light data calendar, the ‘Greenback’ may struggle for clear directional trade today. If the bearish mood prevails, USD could climb.
Canadian Dollar (CAD) Slides amid Oil Price Decline
The Canadian Dollar (CAD) weakened last Friday, as the crude-linked ‘Loonie’ fell victim to a fall in oil prices.
Today, a lack of data may prompt the ‘Loonie’ to trade on oil price dynamics, or its positive correlation to the US Dollar.
Data Releases
Jun 26th 18:00 EUR Ifo Business Climate (Jun) 90.7
Jun 26th 20:00 GBP CBI Distributive Trades (Jun) 0