Australian Dollar (AUD) Slips as Retail Sales Print Misses
The Australian Dollar (AUD) fell back through Friday’s Asian trading session, after October’s finalised retail sales figures printed below its preliminary release.
However, the ‘Aussie’ clawed back the majority of its losses through the European session in response to another sell-off of the US Dollar, which in turn bolstered market risk appetite.
Looking ahead, the Australian Dollar is well positioned to extend its rally into the coming week as well, so long as the market mood remains largely positive.
Pound (GBP) Bolstered by Brexit Deal Hopes
The Pound (GBP) struck higher again at the end of last week, bolstered by hopes that a Brexit deal was close.
Despite a French minister warning that his country would be willing to veto a deal if it did not satisfy his country’s demands, GBP investors appeared to cling to suggestions by an EU source which suggested an agreement was ‘imminent’.
Looking ahead, it’s likely we could see more Brexit driven volatility at the start of this week as Monday is widely seen as the cut-off date for a deal.
Euro (EUR) Undermined by Profit Taking
After relentlessly pushing higher earlier in the week, the Euro (EUR) began to run out of momentum on Friday as the single currency fell victim to some profit taking at the end of the session.
This offset the release of Germany’s latest factory order figures, where a stronger-than-expected uptick in order growth may have otherwise have bolstered EUR exchange rates.
Coming up, this week the focus for EUR investors will be on the latest European Central Bank (ECB) policy meeting, in which the bank is widely expected to announce an expansion to its monetary stimulus programme.
US Dollar (USD) Sinks on Lacklustre Payroll Release
The US Dollar (USD) closed last week on a low, after the latest US non-farm payroll report printed well below expectations.
With the US jobs market only adding 245,000 jobs in November, down from 610,000 in October, USD investors expressed their concern about the state of the US economy as domestic coronavirus cases spike.
Turning to this week, if the market mood remains jubilant, it’s likely we could see the US Dollar extend its losses into another session.
Canadian Dollar (CAD) Firms on Upbeat Employment Figures
The Canadian Dollar (CAD) trended higher on Friday, with the ‘Loonie’ strengthening in response to Canada’s latest employment figures after domestic unemployment fell more sharply than expected in November.
New Zealand Dollar (NZD) Retreats Despite Upbeat Mood
Despite a prevailing risk-on tone, the New Zealand Dollar (NZD) fell back at the end of last week’s session, likely falling foul of some profit taking after jumping earlier in the week.
Data Releases
Dec 7th 17:00 EUR German Industrial Production (Oct) 1.5%