Australian dollar (AUD) subdued in quiet trade
The Australian dollar (AUD) traded in a narrow range at the end of last week’s session as a lack of domestic data muted the ‘Aussie’.
In addition, an uncertain market mood added to the risk-sensitive currency’s lack of direction.
Turning to today, Australian data is thin on the ground once again. As a result, risk appetite could influence the ‘Aussie’.
New Zealand dollar (NZD) rangebound in absence of data
The New Zealand dollar (NZD) was also muted on Friday amid an absence of data and mixed market mood.
Risk dynamics could drive NZD movement today. Could an improving market mood lift the ‘kiwi’?
Pound (GBP) buoyed by UK election result
The pound (GBP) enjoyed modest success on Friday after the Labour Party won a landslide in the UK general election.
Investors welcomed the election results. However as a Labour victory was already priced in, Sterling’s movement was limited.
Turning to today, UK economic data is in short supply. As a result, movement in the pound may be muted.
Euro (EUR) undermined by downbeat data
The euro (EUR) was mixed as last week’s session drew to a close, with falling German industrial production and weaker Eurozone retail sales putting some pressure on the currency.
However, EUR was cushioned by its strong negative correlation with a weakening US dollar (USD).
Looking ahead, Germany’s latest balance of trade report is out this afternoon. Could an expected narrowing of Germany’s trade surplus in May weigh on EUR?
US dollar (USD) struggles amid falling Treasury yields
The US dollar touched multi-week lows on Friday as falling US Treasury yields pressured the ‘greenback’.
A mixed non-farm payrolls report also subdued USD. While June’s figure exceeded expectations, a sharp downward revision to May’s results offset any upside potential.
US economic data is absent from the calendar today. Therefore, risk appetite could drive the safe-haven US dollar.
Canadian dollar (CAD) slides amid rising unemployment
The Canadian dollar (CAD) fell sharply on Friday following a jump in Canadian unemployment in June. Canada’s jobless rate rose from 6.2% to 6.4%, higher than the expected 6.3%.
With Canadian data thin on the ground today, the crude-linked ‘loonie’ could trade in line with oil prices.
Data Releases
16:00 EUR German Balance of Trade (May)