Australian Dollar (AUD) muted in risk-off trade
The Australian Dollar (AUD) struggled at the end of last week’s session as an uptick in the US Dollar (USD) weakened market risk appetite.
Weakness in key commodities like iron ore and coal also applied pressure to the ‘Aussie’ on Friday.
Looking ahead, the focus at the start of this week will be Tuesday’s publication of the minutes from the Reserve Bank of Australia’s (RBA) last policy meeting. Will a hawkish outlook from policymakers help to bolster AUD exchange rates?
New Zealand Dollar (NZD) slides amid bearish mood
The New Zealand Dollar (NZD) stumbled on Friday as a prevailing risk-off mood sapped the appeal of the ‘Kiwi’.
In the absence of any notable domestic data, movement in NZD exchange rates is likely to remain tied to market risk dynamics at the start of this week. Will a cautious mood lead to further losses?
Pound (GBP) struggles despite upbeat sales data
The Pound (GBP) was muted at the end of last week, despite the UK’s latest retail sales data smashing forecasts.
While GBP investors welcomed last month’s spectacular rebound in sales growth, it wasn’t enough to counter previous data releases which stoked expectations for an imminent interest rate cut from the Bank of England (BoE).
Turning to this week, a lull in UK data at the start of the session may leave the Pound vulnerable to losses if markets continue to speculate on upcoming BoE rate cuts.
Euro (EUR) pressured by USD
The Euro (EUR) initially firmed on Friday, buoyed by comments from European Central Bank (ECB) executive board member Isabel Schnabel, cautioning against adjusting the bank’s policy stance prematurely.
However, the single currency’s negative correlation with the US Dollar (USD) then sapped EUR demand later in the session.
Eurozone data is thin on the ground at the start of this week. As a result, the Euro may struggle to find direction.
US Dollar (USD) strengthens on stronger-than-expected PPI figures
The US Dollar (USD) closed this week on a positive note, following the publication of the latest US producer price index.
January’s PPI figures printed above expectations, with a larger-than-expected rebound indicating that US inflationary pressures remain.
Coming up, movement in the US Dollar may be limited in the first half of this week as USD investors await the publication of the minutes from the Federal Reserve’s latest policy meeting.
Canadian Dollar (CAD) buoyed by uptick in oil prices
The Canadian Dollar (CAD) ticked higher on Friday as a modest uptick in oil prices reflected positively on the crude-linked ‘Loonie’.
Will another uptick in domestic inflation provide another boost for the Canadian Dollar in the first half of this week?