Australian dollar (AUD) licks wounds as market mood improves
Fears of an escalation in the Middle East dented the Australian dollar (AUD) at the start of last Friday’s session.
However, as tensions began to cool over the course of the day, AUD managed to lick its wounds and recover most losses. Ultimately, an absence of market-moving releases capped its upside.
Turning to today, the ‘Aussie’ may remain largely rangebound as the lull in data continues. Risk appetite could therefore drive most movement.
New Zealand dollar (NZD) struggles as Middle East tensions flair
Following reports of an Israeli strike against Iran, the risk-sensitive New Zealand dollar (NZD) slid last Friday.
While risk appetite managed to improve as tensions eased, the ‘kiwi’ was unable to stage a recovery due to a light data calendar.
Data continues to remain hard to come by today, which could leave NZD to trade in relation to the market mood.
Pound (GBP) directionless amid stagnant retail sales
The pound (GBP) ended last week on a dull note, following new data showing that retail sales had stagnated in the UK.
In March, sales printed at 0% on a monthly basis as the rising cost of living in the UK dampened consumer spending.
This afternoon, the pound could see variable trade. While the Confederation of British Industry (CBI) is expected to find improving business confidence for the second quarter, gains may be offset by downbeat industrial trends data.
Euro (EUR) grinds higher amid German PPI uptick
Last Friday, the euro (EUR) managed to gain ground against weaker currencies amid news that German PPI ticked higher than forecast.
Producer prices increased by 0.2% in March, above expectations of a 0% reading, suggesting sticky inflationary pressures. Furthermore, EUR’s negative correlation with a retreating US dollar (USD) also aided the single currency.
Overnight, the latest Eurozone consumer confidence index is due to print. If households remained pessimistic in April as forecast, the euro may slip.
US dollar (USD) trims gains as market mood brightens
The US dollar (USD) began last Friday gathering pace, amid a sour market mood following reports of an Israeli attack on Iran.
However, the market mood began to improve over the day’s trade, which saw the ‘greenback’ trim its gains.
Risk appetite is likely to remain the primary driver of movement for USD today. If tensions continue to simmer in the Middle East, safe-haven flows may support the currency.
Canadian dollar (CAD) softened by fading oil prices
The crude-linked Canadian dollar (CAD) endured listless trade last Friday, as oil prices continued to edge lower.
Data remains thin on the ground for the ‘loonie’ at the start of this week, which may leave it directionless.
Data releases
April 22nd 20:00 GBP CBI Business Optimism Index (Q2) 2
April 22nd 20:00 GBP CBI Industrial Trends Orders (Apr) -16
April 23rd 00:00 EUR Consumer Confidence Flash (Apr) -14.2