Australian dollar (AUD) slides in downbeat trade
The Australian dollar (AUD) closed last week’s session on a sour note, being pressured by a bearish shift in risk appetite.
These losses were compounded as AUD investors continued to reprice their Reserve Bank of Australia (RBA) monetary policy expectations following Thursday’s underwhelming jobs data.
Coming up, movement in the ‘Aussie’ is likely to remain tied to market risk dynamics at the start of this week, potentially injecting further volatility into the currency.
New Zealand dollar (NZD) losses capped by upbeat retail sales data
The New Zealand dollar (NZD) also retreated as a result of negative risk flows on Friday but was able to temper its losses following the publication of stronger-than-expected domestic retail sales figures.
Looking ahead, the ‘kiwi’ is vulnerable to further losses if the mood remains cautious at the start of this week.
Pound (GBP) firms as UK bond yields continue to fall
Trade in the pound (GBP) remained positive at the end of last week as a continued fall in UK bond yields helped to offset abysmal UK retail sales data.
Euro (EUR) struggles as German business sentiment remains in the doldrums
The euro (EUR) was muted on Friday, as German business morale only saw a modest improvement this US dollar (USD) bolstered by risk-off flows
The US dollar (USD) firmed at the end of last week as a risk-off market mood saw investors favour the safe-haven currency.
This caution was linked to continued uncertainty in the Middle East, with markets growing increasingly concerned by the apparent lack of progress in peace talks.
Canadian dollar (CAD) slides despite robust retail sales data
The Canadian dollar (CAD) stumbled on Friday, with softer oil prices offsetting surprisingly upbeat domestic retail sales figures.
Expect movement in the ‘loonie’ to remain tied to oil prices today, with any further weakness likely to drag CAD lower again.
Data Releases
11:00 GBP CBI Distributive Trades (May)