On Tuesday, the Euro pulled back from a recent six-month highs but remained well-supported as fading worries over political populism and signs of improving economic conditions in Europe bolstered investor confidence.
With the French election out of way, investors are now focusing on when and how the ECB could scale back its quantitative easing given the recent strength in the Euro zone economy. ECB board member Yves Mersch said on Monday that the central bank is close to replacing its negative view on whether the Euro zone economy will reach growth targets with a neutral one, and should adjust its policy guidance accordingly.
Meanwhile, the Australian Dollar weakened and hit a four-month low of 0.7341 against the US Dollar in early Asian sessions on Tuesday after the release of downbeat retail sales data. According to the latest Australian Bureau of Statistics, retail sales in the country fell 0.1% in March from the previous month, weaker than expectations for 0.3% growth.
As for the Canadian Dollar, it edged lower against its US counterpart paring some of Friday’s gains as weaker than expected Chinese trade data revived a recent selloff in metals, offsetting higher Oil prices. The Loonie had rebounded on Friday from a 14-month low as US Oil prices, Canada’s major exports, bounced back from levels not seen in five months. Meanwhile, data from the Canada Mortgage and Housing Corporation showed on Monday that the Canadian housing starts fell in April after an unexpected surge in March but remained near a five-year high.