Domestic UK Issues Undermine the Pound

Pound (GBP) Volatile amid Domestic Troubles

The Pound (GBP) fluctuated yesterday as domestic concerns offset a risk-on market mood.

Parliament convened to debate the government’s Northern Ireland Protocol Bill, which some fear could cause a UK-EU trade war. Meanwhile, criminal barristers went on strike over below-inflation pay increases, following disruptive train strikes last week.

Later this morning, a speech from Bank of England (BoE) policymaker Jon Cunliffe could impact Sterling. As one of the more dovish members of the Monetary Policy Committee (MPC) Cunliffe may advocate a softer approach to interest rate rises, which may weigh on GBP.

Euro (EUR) Rises on Weaker USD

The Euro (EUR) strengthened during yesterday’s session as the single currency enjoyed its negative correlation to the US Dollar (USD), which weakened.

In addition, a fairly upbeat tone among European investors helped lift EUR exchange rates.

European Central Bank (ECB) President Christine Lagarde is speaking this morning. Her comments could cause some movement in the Euro.

US Dollar (USD) Declines amid Upbeat Trade

The safe-haven US Dollar stumbled yesterday amid a cheery trading sentiment.

Stronger-than-expected US durable goods orders in the afternoon only seemed to put more pressure on USD by adding to the bullish market mood.

A forecast fall in US consumer confidence this afternoon could dent the ‘Greenback’.

Canadian Dollar (CAD) Slips despite Rising Oil Prices

The commodity-linked Canadian Dollar (CAD) struggled on Monday, despite a slight uptick in oil prices.

Turning to today’s session, CAD could trade on oil price dynamics.

Australian Dollar (AUD) Inches Up amid Positive Mood

The Australian Dollar (AUD) edged higher overnight as a moderately upbeat mood boosted the risk-sensitive ‘Aussie’.

New Zealand Dollar (NZD) Wobbles despite Risk-On Sentiment

The New Zealand Dollar (NZD) wavered lower in overnight trade as investors’ modest appetite for risk failed to boost the ‘Kiwi’.

Samuel Birnie

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