Australian Dollar (AUD) Marches Higher amid Upbeat Trade
Last Friday, the Australian Dollar (AUD) gained ground against its peers amid an improving market mood.
Investors began to bet that central banks have reached the end of their tightening cycles, improving the global economic outlook. However, a lack of data releases may have limited AUD’s upside.
Due to a short supply of data today, AUD could remain afloat if bullish trade continues.
New Zealand Dollar (NZD) Trims Risk-On Gains
Similarly, the New Zealand Dollar (NZD) firmed during last Friday’s session, due to its risk-sensitive nature.
However, the ‘Kiwi’ saw its gains trimmed against some peers due to a short supply of macroeconomic data.
Data releases are thin on the ground for NZD again today, which may leave the ‘Kiwi’ exposed to shifts in market risk dynamics.
Pound (GBP) Undercut by Shock Slump in Sales
On Friday, the Pound (GBP) struggled to find its footing following a surprise drop in the latest UK retail sales data.
In October, sales contracted by 0.3%, prompting concerns over the state of the sector ahead of the festive period. This weighed on GBP by showing that consumers were continuing to feel the pinch of the cost-of-living crisis.
Continued analysis of the UK’s economic outlook could be the focus today, amid a light data calendar. Bleak forecasts from analysts may weigh on GBP.
Euro (EUR) Volatile amid lack of Data
The Euro (EUR) endured choppy trade at the end of last week’s session, as a data lull limited its appeal.
Increased levels of risk appetite brought further volatility to EUR exchange rates, with many investors shunning the safer single currency in favour of riskier assets.
This evening, the latest German PPI data is due to print. Economists anticipate a 0.1% contraction in October’s data, which could weaken EUR.
US Dollar (USD) Undermined by Fed Rate Cut Bets
Amid mounting speculation around Federal Reserve interest rate cuts, the US Dollar (USD) weakened last Friday.
This speculation prompted a rise in risk appetite, which also weighed on the safe-haven ‘Greenback’. Additionally, a lack of impactful data prevented USD from making a recovery.
Risk appetite is likely to be the primary driver of movement for the ‘Greenback’ today. A cheery market mood could weaken it against riskier peers.
Canadian Dollar (CAD) Buoyed by Oil Price Rise
The crude-linked Canadian Dollar (CAD) managed to gain some ground against its peers last Friday, as oil prices shot up by over 2%.
With data in short supply, the ‘Loonie’ may be reliant on oil price dynamics today. If oil continues its recovery, CAD could climb.
Data Releases
Nov 20th 15:00 EUR ECB Lane Speech
Nov 20th 17:00 EUR DE PPI (Oct) -0.1%