Australian Dollar (AUD) Firms despite Coal Price Dip
A return of global risk appetite strengthened the risk-sensitive Australian Dollar (AUD) at the end of last week. A rise in iron ore prices also lifted AUD.
However, a sharp downturn in coal prices hobbled the ‘Aussie’ as well as signs of a slowdown in China’s economic recovery.
Looking to today, AUD could make gains if the market mood remains risk-on.
New Zealand Dollar (NZD) Climbs amid Upbeat Trade
The risk-sensitive New Zealand Dollar (NZD) was pushed higher by a positive risk tone on Friday. Markets grew increasingly hopeful that a resolution to the US debt ceiling crisis was imminent.
Additionally, stronger-than-expected New Zealand trade data boosted the ‘Kiwi’.
NZD exchange rates could climb higher today if the bullish tone persists.
Pound’s (GBP) Gains Capped by Softer BoE Bets
A risk-on mood helped the Pound (GBP) to edge higher against some of its safer peers on Friday.
However, a lack of UK economic data left Sterling to trade with limited movement.
UK economic data remains scarce today, so GBP may be muted once again as investors look ahead to impactful British data later in the week.
Euro (EUR) Buoyed by Hawkish Lagarde Comments
The Euro (EUR) struggled on Friday, despite an unexpected rise in monthly German producer price inflation.
The downside came as an upbeat market mood dampened the appeal of the safer single currency.
This evening, a continued recovery in consumer confidence figures could buoy the Euro.
US Dollar (USD) Slips ahead of Speech from Fed Chair Powell
The US Dollar (USD) came under pressure from a risk-on market mood on Friday.
The safe-haven ‘Greenback’ saw more drastic losses limited by bets on additional Federal Reserve interest rate hikes, however.
With no US data due out today, Fed rate hike bets could continue to provide support to the US Dollar.
Canadian Dollar (CAD) Drops after Retail Sales Contract
A slump in March’s retail sales pulled the Canadian Dollar (CAD) lower on Friday. Losses for the commodity-linked ‘Loonie’ were cushioned by a rise in crude oil prices, though.
CAD could recoup some of its losses today if oil prices continue to recover lost ground.
May 21st 22:30 USD Fed Bullard Speech
May 22nd 00:00 EUR Consumer Confidence (May) -17