Australian dollar (AUD) slides amid profit-taking
The Australian dollar (AUD) was among the worst-performing major currencies on Friday.
This slump came as AUD investors continued to book their profits following the Australian dollar’s recent bullish run.
AUD data is thin on the ground at the start of this week, likely leaving the ‘Aussie’ to trade in relation to market risk dynamics.
New Zealand dollar (NZD) slips in cautious trade
The New Zealand dollar (NZD) was muted at the end of last week as the dour market mood offset a robust domestic manufacturing PMI.
Meanwhile, New Zealand’s latest services index looks set to lift the ‘kiwi’ at the start of this week after reporting an acceleration of service sector growth last month.
Pound (GBP) buoyed by BoE Pill Comments
The pound (GBP) edged higher at the end of last week, in response to comments from Bank of England (BoE) Chief Economist Huw Pill.
Pill claimed that the BoE still has more work to do in taming inflation and reiterated his view that policy needs to remain restrictive to achieve this.
Meanwhile, the pound may be trapped in a narrow range today with GBP investors reluctant to alter their positions as they brace for high-impact UK economic releases later in the week.
Euro (EUR) rangebound as GDP holds steady
The euro (EUR) held its ground on Friday, as the Eurozone’s latest GDP reading printed in line with expectations.
Data published at the end of last week confirmed the bloc’s economy expanded 0.3% in the last quarter of 2025, maintaining the pace set in Q3.
Turning to the start of this week, the Eurozone’s latest industrial production release could drag on the euro as factory output is forecast to have slowed in December.
US dollar (USD) gains curtailed by soft inflation
The US dollar (USD) wobbled at the end of last week, as the latest US consumer price index reversed the currency’s initial gains.
Annual inflation decelerated at a faster-than-expected pace in January, trimming some USD investors’ more hawkish bets on Federal Reserve policy.
US economic releases are in short supply at the start of this week, but the US dollar may still appreciate if recent safe-haven demand persists.
Canadian dollar (CAD) weighed down by soft oil prices
The Canadian dollar (CAD) was muted through Friday’s session as softening oil prices reflected poorly on the commodity-linked currency.
Oil price dynamics will likely continue to influence the ‘loonie’ at the start of this week, potentially leading to further pressure if prices continue to slip.
Data releases
07:30 NZD Services PMI (Jan)
20:00 EUR Industrial Production (Dec)