Pound (GBP) Seesaws as Markets Mull Support Package The Pound (GBP) initially slipped on Friday but managed to recover some losses agai
Pound (GBP) Seesaws as Markets Mull Support Package
The Pound (GBP) initially slipped on Friday but managed to recover some losses against its weaker peers in the afternoon.
The mixed movement came as analysis of Rishi Sunak’s support package continued to come in. Some criticised the increase in government borrowing and potential dent in renewables investment due to the windfall tax. However, many economists said the spending package could help prevent a recession.
With UK data still in short supply today, UK domestic news may remain the main driver of GBP movement.
Euro (EUR) Slips amid Lack of Data
The Euro (EUR) fell against the majority of its peers on Friday as a lack of Eurozone data left the single currency open to losses.
In addition, reports that Russia is making progress in eastern Ukraine may have pressured EUR. The Eurozone economy is particularly vulnerable to the fallout of the Russia-Ukraine war, so negative news tends to hurt the single currency.
This morning, the latest economic sentiment report on the Euro area is forecast to edge lower. Such a result could see the Euro slip further.
US Dollar (USD) Falters amid Risk-On Trade
The US Dollar (USD) struggled close to monthly lows on Friday as a relatively risk-on mood kept a lid on the safe-haven currency.
Easing inflation in the US may have added to USD’s woes. The core PCE price index – the Federal Reserve’s preferred measure of inflation – fell from 5.2% to 4.9% in April. This could cause traders to pare back bets for more aggressive Fed policy.
Amid a lack of American economic data today, the ‘Greenback’ could trade primarily on market risk appetite.
Canadian Dollar (CAD) Fluctuates as Oil Prices Wobble
The Canadian Dollar (CAD) wavered through Friday’s session as some volatility in the oil market affected the crude-linked ‘Loonie’.
Today, movements in the oil market may continue to impact CAD.
Australian Dollar (AUD) Rises on Positive China Covid News
The Australian Dollar (AUD) strengthened overnight as China looks set to lift some lockdown restrictions in Beijing and Shanghai this week. This news both improved market sentiment and lifted the China-proxy ‘Aussie’.
New Zealand Dollar (NZD) Firms amid Risk-On Trade
The New Zealand Dollar (NZD) also ticked higher in overnight trade as a cheery market mood boosted the risk-sensitive ‘Kiwi’.
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