After a difficult week during which it touched 2009-lows against sterling, the Canadian dollar recovered some ground on Friday. Sterling weakness coincided with figures showing Canadian consumer spending rising from 0.9% in November to 1.2% in December. Although the figures are still a way off the target of 2%, they provided a much-needed lifeline for the Canadian currency. Eyes will be on monthly growth figures released this Friday.
Following on from Thursday, the Japanese yen continued its rally as a downturn in Asian stocks at the back-end of last week saw an injection of demand for the traditionally safe-haven yen.
The Australian dollar lost ground following yet another barrage of downward jawboning from policy-makers; central bank board member Heather Ridout voiced her opinions that the currency is overvalued. Australian releases this week include business confidence figures overnight tonight, and inflation figures on Friday.
This promises to be an interesting week for the New Zealand dollar, with an interest rate decision, trade balance figures, and a statement from the Governor of the country’s central bank to look forward to.
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