Pound (GBP) pressured by rising UK borrowing
The pound (GBP) struggled for support at the end of last week after UK public sector borrowing came in higher than expected for February.
Economists warn that the latest increase could push Chancellor Rachel Reeves to announce spending cuts or even tax hikes in her Spring Statement later this week.
Today, the UK’s latest PMI figures are due for release. If March’s data shows a pickup in services sector growth, it could help lift Sterling.
Euro (EUR) struggles as USD strength weighs
The euro (EUR) traded without clear direction on Friday, as its negative correlation with the US dollar (USD) kept gains in check.
This overshadowed optimism about Germany’s new spending plans, which were approved by the country’s upper house of parliament.
Looking ahead, if the Eurozone’s latest PMI figures indicate that private sector activity stagnated this month, the euro may face fresh losses.
US dollar (USD) gains as cautious markets boost demand
The US dollar ended last week on strong footing as risk-off sentiment drove demand for the safe-haven currency.
However, lingering concerns that President Donald Trump’s trade policies could push the US into recession capped USD gains.
The latest US S&P PMIs could influence USD trade today. While not as impactful as the ISM readings, signs of slowing private sector growth may fuel recession fears and weigh on the ‘greenback’.
Canadian dollar (CAD) subdued as retail sales disappoint
The Canadian dollar (CAD) was muted on Friday after Canada’s latest retail sales report revealed a sharper-than-expected decline in consumer spending.
With little Canadian data on the calendar today, CAD movement is likely to be dictated by oil price fluctuations.
Australian dollar (AUD) lifted by upbeat PMI data
The Australian dollar (AUD) strengthened overnight, finding support as domestic PMI readings came in ahead of forecasts, with AUD investors particularly encouraged by an acceleration in manufacturing growth.
New Zealand dollar (NZD) volatile as sentiment shifts
The New Zealand dollar (NZD) saw choppy trade overnight, with an uncertain market mood fueling fluctuations in the risk-sensitive currency.
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.