Pound (GBP) drifts sideways amid data drought
The pound (GBP) remained rangebound during yesterday’s session, as a lull in UK economic releases offered little in the way of direction for the currency.
GBP investors also appeared hesitant to place significant bets as they awaited clarity on whether the UK might secure an exemption from Trump’s sweeping tariffs.
With no key UK data on the horizon, the pound is likely to continue taking its cues from broader market trends today.
Euro (EUR) pressured as German inflation eases
The euro (EUR) struggled for support on Monday after preliminary data revealed that German inflation softened last month.
The slowdown in price growth dented demand for the single currency as it reinforced speculation that the European Central Bank (ECB) could push ahead with another interest rate cut later this month.
Eurozone inflation figures are due for release today and are expected to confirm a similar trend, which may further fuel ECB rate cut expectations and weigh on the euro.
US dollar (USD) climbs on safe-haven flows
The US dollar (USD) strengthened at the start of this week as a cautious market mood drove demand for safe-haven assets.
This followed remarks from US President Donald Trump, reiterating that the incoming reciprocal tariffs will apply to ‘all countries.’
Looking ahead, the US will publish its latest ISM manufacturing PMI and JOLTs job openings data today. If either release indicates slowing US economic momentum, the ‘greenback’ could face some headwinds.
Canadian dollar (CAD) dips on election uncertainty
The Canadian dollar (CAD) stumbled at the start of the week, as political uncertainty surrounding the upcoming election made investors wary of the ‘loonie.’
However, if oil prices extend their recent rally, the Canadian dollar could find some support as today’s session unfolds.
Australian dollar (AUD) firms as RBA holds rates
The Australian dollar (AUD) edged higher in overnight trade, finding support after the Reserve Bank of Australia (RBA) opted to keep interest rates unchanged.
New Zealand dollar (NZD) subdued as risk appetite wanes
The New Zealand dollar (NZD) struggled for support in overnight trade, as risk-off sentiment continued to limit demand for the ‘kiwi.’
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