GBP around multi-week highs versus EUR and USD despite retail slump

Uncertainty surrounding the US dollar caused ripples on the global currency markets, although the pound was firmly on the rise in the latter half of the week thanks to positive noises from the EU over the possibility for Brexit to be undone.

Pound sterling is making a recovery today, with GBP/EUR up 0.2% to €1.1350, while GBP/USD has climbed 0.3% to US$1.3895.

There are some big events on the calendar for the UK, Eurozone, US and New Zealand this week, so expect plenty of volatility, although there will still be some quiet moments where the long-term outlook comes back into focus.

Pound sterling boosted as EU leaves door open to UK post-Brexit

Things started out sluggishly for the pound last week, but comments from EU leaders helped GBP shoot to multi-week highs versus EUR and USD by the weekend.

Focus on German coalition talks keeps EUR on choppy form

The euro struggled to hold its ground last week as Angela Merkel’s attempts to form a new German government continued to run into problems. The outlook for Eurozone monetary policy remained gloomy as well, which didn’t help.

Uncertainty over monetary policy outlook weighs on USD exchange rates

Members of the Federal Reserve were giving differing views on the need for more monetary tightening this year, while economic data was mixed at best. The US dollar ended Friday higher overall, although in some cases it was still far below the week’s best levels.

AUD boosted by historic employment data, NZD rises on dairy price surge

Risk appetite helped prop up the Australian and New Zealand dollars last week; with a dearth of ecostats on the calendar this week, markets will need to be feeling risky once more if AUD and NZD are to record more gains.