Australian dollar (AUD) pressured by risk-off flows
The Australian dollar (AUD) slumped at the end of last week amid a notable deterioration in market risk appetite.
In addition to ongoing geopolitical uncertainty, markets were also spooked by the prospect of higher US interest rates following Friday’s stellar US jobs data.
Australian data is in short supply today, which will likely leave the ‘Aussie’ vulnerable to further losses if a risk-off mood continues to prevail.
New Zealand dollar (NZD) slides as risk appetite weakens
The New Zealand dollar (NZD) also faltered on Friday amid the notably cautious turn in investor risk sentiment.
Expect movement in the ‘kiwi’ to remain tied to market risk dynamics at the start of this week amid a lull in NZD economic releases.
Pound (GBP) firms despite lull in data
The pound (GBP) edged higher against the majority of its currency rivals at the end of last week.
This upside appeared to be driven primarily by the weakness of its peers, amid the lack of a clear domestic catalyst for Sterling’s strength.
UK economic releases are in short supply at the start of this week, which may leave the pound to trade without strong directional bias today.
Euro (EUR) pressured by GDP revision
The euro (EUR) retreated on Friday, following the publication of the Eurozone’s latest GDP figures.
The latest estimate of GDP saw growth in the first quarter revised down from 0.1% to -0.2%, after Ireland’s economic performance at the start of 2026 proved worse than initially thought.
Coming up, the release of Germany’s latest factory orders data could provide support to the euro at the start of this week if April’s data reports order growth remained positive.
US dollar (USD) rallies on strong payrolls print
After initially facing resistance through the first half of the European session, the US dollar (USD) rallied on Friday as markets responded to the latest US payroll data.
The highly influential report showed the US economy added 172,000 jobs in May, significantly outpacing forecasts for an increase of 85,000 and boosting hawkish Federal Reserve rate expectations.
The focus for USD investors will likely switch back to the Middle East at the start of this week, potentially leading to further gains for the ‘greenback’ if US-Iran peace talks remain stalled.
Canadian dollar (CAD) strengthens on impressive jobs data
The Canadian dollar (CAD) closed last week’s session on a positive note as Canada’s own jobs data reported a surprise fall in domestic unemployment last month.
Turning to the start of this week, the ‘loonie’ could be forced to relinquish a portion of these gains if oil prices continue to retreat.
Data Releases
16:00 EUR German Factory Orders (Apr)