Pound (GBP) benefits from broader FX weakness
The pound (GBP) climbed at the end of last week, taking advantage of the struggles of many of its currency counterparts.
Further supporting Sterling’s gains was a spillover in market optimism from Europe.
With UK data remaining scarce at the start of the week, the pound may struggle to find fresh momentum.
Euro (EUR) lifted by EU defence spending plan
The euro (EUR) extended its rally on Friday, marking its strongest weekly performance in 16 years.
Driving the single currency higher was news of an ambitious €800bn European defence investment plan, which reinforced recent optimism surrounding the Eurozone.
Looking ahead, the euro may maintain its momentum this morning after German industrial production data beat forecasts with a larger-than-expected rebound in January.
US dollar (USD) weakens as jobs data disappoints
The US dollar (USD) softened at the end of last week after the latest US payroll report revealed the economy added just 151,000 jobs in the previous month, missing forecasts of 160,000. Additionally, the unemployment rate unexpectedly rose to 4.1%.
The downbeat labour data saw markets price in a 50% chance of a Federal Reserve rate cut in May, weighing on USD exchange rates.
Looking ahead, broader US economic sentiment may shape the US dollar’s trajectory. If recession concerns persist, the ‘greenback’ could face further headwinds.
Canadian dollar (CAD) slides amid weak employment figures
The Canadian dollar (CAD) struggled on Friday as domestic labour data disappointed, with just 1,100 jobs added last month.
The commodity-linked ‘loonie’ could remain under pressure at the start of this week if oil prices continue to trend lower.
Australian dollar (AUD) subdued as China slips into deflation
The Australian dollar (AUD) was muted through Monday’s Asian session, following reports that China, Australia’s largest trading partner, fell back into deflation last month.
New Zealand dollar (NZD) supported by improved risk appetite
The New Zealand dollar (NZD) edged higher in overnight trade, benefiting from a modest uptick in market risk sentiment.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.