Pip Diddy

Today’s morning London session was rather busy, with lots of themes playing out. However, the most noteworthy are CAD and GBP weakness, as well as NZD strength.

Risk aversion was the name of the game during the Asian session, as bearish reports made it easy for traders to take profits on their higher-yielding bets.

The euro continued its ascent fueled by stronger than expected GDP growth while the dollar found more sellers as doubts about the U.S. tax plan lingered.

There was action aplenty during the session, with EUR demand and USD weakness being the most noticeable themes. GBP is noteworthy as well since it got kicked broadly lower when the U.K.’s latest CPI reading failed to meet consensus. 

Major currencies and the Asian bourses stayed in Chopsville for most of the session, except for the New Zealand dollar which tanked after China printed top-tier reports.

No data? No problem! The U.S. dollar was able to squeeze out some gains against its peers on higher bond yields while the pound recovered slightly from its earlier selloff.

The risk-off vibes lent wings to JPY and CHF, with CHF getting the better of it. The same risk-off vibes weighed on the higher-yielders, however, especially NZD.

Traders shed pounds at the start of the week as they trimmed the fat around UK’s weekend headlines. Meanwhile, higher U.S. Treasury yields sent the Greenback higher across the board.

Like last week, volatility was relatively tight this week. With that said, GBP strength and USD weakness were the main themes this week. So, what drove forex price action this week? And what about the other currencies? How drove they fare?

GBP outclassed its rivals during the session, apparently because of positive U.K. data. AUD, meanwhile, was the worst-performing currency, likely because of the slide in gold prices during the session.