Pound (GBP) buoyed by European optimism
The pound (GBP) trended broadly higher through yesterday’s session as a general sense of optimism in Europe underpinned the currency.
Sterling also found support from the UK’s latest manufacturing PMI, which saw February’s final reading revised slightly higher.
With no major UK economic releases scheduled today, the pound’s movement is likely to be dictated by broader market sentiment. If optimism surrounding Ukraine persists, GBP may continue to gain ground.
Euro (EUR) rallies on Ukrainian peace efforts
The euro (EUR) started the week on the front foot, bolstered by renewed hopes for a Ukrainian peace agreement spearheaded by European leaders.
Further boosting EUR exchange rates was the latest Eurozone CPI report, which showed inflation eased at a slower rate than expected last month.
Later today, the Eurozone will release its latest job figures. If unemployment continued to rise in January, the euro could face some selling pressure.
US dollar (USD) slips as markets favour Europe
The US dollar (USD) softened on Monday as investors shifted their focus towards European assets amid rising hopes for a Ukraine peace deal.
Also weighing on the ‘greenback’ was the latest ISM manufacturing PMI, which revealed US factory growth almost ground to a halt last month.
Looking ahead, risk-off flows could offer the US dollar some support today, though lingering concerns over US economic growth may keep gains in check.
Canadian dollar (CAD) slumps as US tariffs take effect
The Canadian dollar (CAD) struggled for support during Monday’s European session, as many investors remained hopeful that a last-minute resolution would prevent US tariffs on Canadian goods.
However, those hopes proved unfounded, with the ‘loonie’ facing fresh losses after the tariffs were officially imposed overnight.
Australian dollar (AUD) cushioned by RBA minutes
The Australian dollar (AUD) came under pressure overnight as escalating trade war fears dampened market sentiment. However, losses were limited after the Reserve Bank of Australia’s (RBA) latest meeting minutes signalled policymakers’ continued caution over future rate cuts.
New Zealand dollar (NZD) weighed down by trade tensions
The New Zealand dollar (NZD) also faced downside pressure in overnight trade as the latest wave of US tariffs dented market risk appetite.
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