Pound (GBP) stumbles as UK economy shrinks
The pound (GBP) closed last week on the back foot following underwhelming UK growth data.
The UK’s latest GDP report raised fresh concerns about the country’s economic outlook, as it unexpectedly shrank by 0.1% at the start of the year.
With no notable UK data releases today, the pound may struggle for direction.
Euro (EUR) strengthens as USD softens
The euro (EUR) gained ground on Friday, capitalising on its strong inverse correlation with the US dollar (USD).
However, the single currency’s upside potential was capped as concerns over transatlantic trade relations continued to linger.
With no key Eurozone data on the docket, trade tensions between the EU and US could dictate movement in the euro. Further escalation may push the currency lower.
US dollar (USD) pressured by weaker consumer sentiment
The US dollar softened at the end of last week after the University of Michigan’s consumer sentiment index revealed a sharp drop in confidence.
As recent recession concerns have been largely fuelled by deteriorating consumer sentiment, the figures placed fresh pressure on USD exchange rates.
Today, the focus shifts to the latest US retail sales figures. A slowdown in consumer spending could heighten recession fears and weigh on the US dollar.
Canadian dollar (CAD) supported by oil price gains
The Canadian dollar (CAD) edged higher on Friday, as the oil-sensitive currency benefited from an uptick in crude prices.
At the start of this week, oil price movements and lingering uncertainty over trade tariffs are likely to drive CAD exchange rates.
Australian dollar (AUD) lifted by Chinese stimulus optimism
The Australian dollar (AUD) started the week on the front foot, buoyed by market optimism over China’s latest stimulus measures.
New Zealand dollar (NZD) rises amid risk-on sentiment
The New Zealand dollar (NZD) also climbed during today’s Asian session, as improving risk appetite provided a tailwind for the ‘kiwi’.
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