The Japanese yen lost ground on Friday, sliding by over one percent against sterling. Data released in the morning showed yearly household spending levels came in worse than forecast, contracting by two-and-a-half per cent. The Canadian dollar also lost ground late on Friday, eradicating some of the gains achieved earlier in the week. This suggests that traders believed that the currency had been over-bought over the previous days.
We could see some significant movement from the Canadian dollar this week, with growth figures today, trade balance figures on Thursday, and employment and economic health data on Friday. We could also expect some Australian dollar movement given an interest rate decision, a speech from the central bank governor, as well as retail sales, trade balance, and building approvals figures to be released. We also have Chinese manufacturing figures and New Zealand business confidence data to look forward to, so it should be a busy week for global currencies.
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