Pound (GBP) dented by downbeat PMI
The pound (GBP) faced some pressure yesterday after the UK’s final manufacturing PMI was revised lower to show a larger contraction in activity.
However, Sterling held steady against some of its weaker peers despite the downbeat PMI.
Looking ahead, the UK calendar is quiet today. Therefore, GBP movement may be muted.
Euro (EUR) slides amid French political turbulence
The euro (EUR) dropped yesterday as political instability in France – the Eurozone’s second-largest economy – pressured the common currency.
French Prime Minister Michel Barnier used special constitutional powers to force his contested budget through the deeply divided National Assembly, triggering a no-confidence vote.
French political instability could continue to weigh on EUR today amid a lack of supporting Eurozone data.
US dollar (USD) rallies on fresh Trump tariff threats
The US dollar (USD) surged at the start of the week as markets reacted to fresh tariff threats from President-Elect Donald Trump over the weekend.
On his social media platform Truth Social, Trump said he would impose 100% tariffs on BRICS nations if they sought to challenge the US dollar with a global reserve currency of their own.
This afternoon, the latest Job Openings and Labor Turnover survey could affect USD. Another weak reading may take the shine off the US dollar.
Canadian dollar (CAD) buoyed by USD and rising oil
The Canadian dollar (CAD) rose yesterday, thanks to the currency’s correlations with both USD and rising oil prices.
With Canadian data absent from the calendar today, oil price dynamics could drive most movement in the ‘loonie’.
Australian dollar (AUD) rocked by tariff fears
The Australian dollar (AUD) traded in a wide range overnight on Monday as Trump’s latest tariff threat continued to rattle AUD investors and offset hawkish Reserve Bank of Australia (RBA) interest rate bets.
New Zealand dollar (NZD) fluctuates in mixed trade
Movement in the New Zealand dollar (NZD) largely mirrored that of the ‘Aussie’ in overnight trade, with the ‘kiwi’ also getting caught up in the volatility surrounding Trump’s tariff threat.