Australian dollar (AUD) buoyed by peace hopes
The Australian dollar (AUD) firmed on Friday amid a pause in fighting between the US and Iran, with a White House official claiming the US was allowing space for diplomacy.
This boosted hopes that the latest clashes had come to an end and that the two sides would continue with peace negotiations.
However, with tensions flaring again over the weekend, the market mood could sour today. If so, the risk-sensitive ‘Aussie’ may weaken.
New Zealand dollar (NZD) suffers profit-taking
The New Zealand dollar (NZD) initially ticked higher on Friday, striking multi-week highs, although the ‘kiwi’ then trimmed its gains as investors booked their profits following a strong week for the currency.
NZD could face a slow start to this week’s session after New Zealand’s latest services PMI revealed another contraction in activity in June.
Pound (GBP) subdued amid lack of data
The pound (GBP) faced some turbulence at the end of last week, with Sterling slipping against some of its stronger peers.
A lack of UK economic data stifled the currency’s potential, leaving it exposed to losses.
Releases remain thin on the ground at the start of this week, possibly leaving the pound to trade without a clear trajectory.
Euro (EUR) weakens as sentiment brightens
The euro (EUR) fell on Friday, with the safer single currency struggling to garner support amid an improving market mood.
Some resilience in the US dollar (USD) may also have pressured EUR, due to the currencies’ inverse trading relationship.
With Eurozone data absent from the calendar, EUR could face uncertain movement today.
US dollar (USD) wavers amid improving mood
The US dollar faced some volatility on Friday, with USD exchange rates fluctuating in a wide range.
Overall, the safe-haven ‘greenback’ slipped against its strongest peers, although losses were limited as it showed some resilience.
Canadian dollar (CAD) lifted by strong jobs data
The Canadian dollar (CAD) strengthened on Friday as Canada’s latest jobs report beat forecasts. Weekly gains in oil also supported the commodity-linked currency.
Crude prices could remain a key driver of CAD today. If oil ticks higher amid renewed tensions in the Middle East, the ‘loonie’ could climb.
Data releases
08:30 NZD Services NZ PSI (Jun)
19:25 USD Fed Bowman Speech