The British pound was the strongest currency last week, rising 0.81% against the US dollar. Sterling gained as opinion polls suggested that the risks of the UK leaving the EU were ebbing, underlining the fact that the sterling was focusing more on the Brexit risks than the fundamentals. Last week saw the UK’s first quarter GDP coming out unchanged at 0.40% at the second revision. The Canadian dollar was the second best currency pair, rising 0.65%. The Bank of Canada left interest rates unchanged last week. The Loonie was also supported by stronger oil prices.
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Weekly Spot FX Performance – 27/05/2016 (Source: Finviz.com)
The NZD and the EUR were the weakest currencies last week, including the AUD. The commodity-linked currencies posted steady declines as gold prices continued to fall for the fourth consecutive week. For the euro, despite an upbeat German GDP data, monetary policy divergence was back pushing the single currency lower.
Fundamentals for the Week 30/05 – 03/06
