Australian dollar (AUD) falters in subdued trade
The Australian dollar (AUD) initially held its ground at the end of last week, amid a muted market mood.
However, the ‘Aussie’ was unable to hold on to these gains for long, with a negative shift in market risk appetite during the European trading session sending AUD exchange rates lower overnight.
Movement in the ‘Aussie’ is likely to be closely linked to China’s latest PMI figures today. Another contraction in the factory sector could negatively impact AUD exchange rates.
New Zealand dollar (NZD) underpinned by positive consumer sentiment
The New Zealand dollar (NZD) edged higher on Friday, as domestic consumer confidence unexpectedly rose to a six-month high in June.
The release of New Zealand’s latest business confidence figures may provide a boost for the ‘kiwi’ today, if morale improved as forecast this month.
Pound (GBP) ticks lower amid profit-taking
The pound (GBP) struggled to attract support at the end of last week, amid a lull in notable UK economic releases.
This left some GBP investors to book profits as the session came to a close, exerting some downward pressure on Sterling.
GBP investors await the release of the UK’s latest GDP figures today. The final estimate for the first quarter is expected to confirm a solid expansion of growth, which may help support Sterling at the start of the week.
Euro (EUR) buoyed by EU-US trade deal optimism
The euro (EUR) rallied on Friday, amid growing confidence that the EU and US are close to reaching a trade deal.
This helped to offset the Eurozone’s latest economic sentiment index, following a surprise drop in confidence this month.
Germany will publish its latest consumer price index later today. June’s preliminary figures are expected to report a modest acceleration in inflation, potentially tempering bets on European Central Bank (ECB) interest rate cuts and lifting the euro.
US dollar (USD) fluctuates amid trade deal hopes
Trade in the US dollar (USD) was mixed at the end of last week. Reports that Washington and Beijing have signed a trade agreement and that the US is close to signing several more trade deals initially helped underpin the ‘greenback’ on Friday.
However, these gains were tested later in the session after a shock fall in US personal income and spending spooked USD investors.
Looking ahead, USD investors are likely to remain focused on trade deal developments, as we enter the last full week until US President Donald Trump’s tariff pause expires.
Canadian dollar (CAD) weakens as GDP contracts
The Canadian dollar (CAD) ticked lower on Friday, pressured by weaker-than-expected GDP data, which reported the Canadian economy contracted through April and May.
Notable Canadian data is in short supply today, which is likely to leave the movement of the ‘loonie’ to be driven by oil price dynamics.
Data releases
11:00 NZD Business Confidence (Jun)
16:00 EUR German Retail Sales (May)
16:00 GBP GDP (Q1)
22:00 EUR German Inflation Rate (Jun)