Australian dollar (AUD) rangebound amid peace deal uncertainty
The Australian dollar (AUD) traded sideways on Friday, having bounced off multi-month lows on Thursday night, as markets cautiously awaited fresh details on a US-Iran peace plan.
Optimism that both sides were ready to sign a deal was kept in check by mixed signals coming from Washington and Tehran.
Looking forward, AUD movement may be limited today as investors wait for tomorrow’s interest rate decision from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) choppy as risk sentiment wavers
The New Zealand dollar (NZD) also wavered on Friday, with an indecisive market mood causing the risk-sensitive currency to fluctuate in a narrow range.
Turning to today, the ‘kiwi’ could struggle after the latest New Zealand services PMI revealed another month of contracting activity.
Pound (GBP) uncertain amid weak GDP
The pound (GBP) struggled to find a clear direction on Friday, with a 0.1% contraction in UK GDP putting some pressure on the currency.
However, Sterling was cushioned by a drop in UK government borrowing costs, which spared GBP from losses.
Sterling may be muted today, as GBP investors brace for the Bank of England (BoE) decision and the politically significant by-election in Greater Manchester on Thursday.
Euro (EUR) unsure as data dries up
The euro (EUR) also traded without a strong directional bias on Friday, with markets seemingly waiting with bated breath to hear more details on a possible peace deal in the Middle East.
A lack of notable Eurozone economic data left the common currency to wobble in a narrow range amid the uncertainty.
The Eurozone’s latest industrial production figures could lend EUR some support today, as markets expect to see a slight improvement in April.
US dollar (USD) moves sideways amid mixed mood
The US dollar (USD) wavered in a narrow range at the end of last week amid uncertainty around a possible US-Iran peace deal.
After President Donald Trump claimed that an agreement had been reached and would soon be signed, Iran pushed back and claimed nothing had been finalised.
An expected slowdown in US industrial production could dent USD later today. Elsewhere, Middle East news may drive movement in the ‘greenback’.
Canadian dollar (CAD) stumbles as oil prices ease
The crude-linked Canadian dollar (CAD) fluctuated in tandem with oil prices on Friday, with CAD briefly brushing multi-month lows as crude touched its lowest levels since the first week of the US-Iran war.
Market-moving Canadian data is thin on the ground today, likely leaving CAD to trade on oil prices. If crude slips, the Canadian dollar may weaken.
Data releases
08:30 NZD Services NZ PSI (May)
19:00 EUR Industrial Production (Apr)
23:15 USD Industrial Production (May)