Pound (GBP) weakens as UK eyes response to US tariffs
The pound (GBP) stumbled against most of its peers on Friday, pressured by renewed trade concerns.
The dip in GBP came as the UK government hinted at possible retaliatory measures against US President Donald Trump’s tariff plans, dampening optimism over a potential UK-US trade agreement.
With little in the way of UK economic data due today, Sterling may continue to face pressure if global risk sentiment remains fragile.
Euro (EUR) benefits from cautious market tone
The euro (EUR) edged higher at the end of last week as nervous market conditions supported demand for the safe-haven single currency.
EUR gains were capped, however, by weaker-than-expected German factory orders, which reported flat growth in February and weighed on confidence in Europe’s largest economy.
Looking to today, the euro may draw support if the Eurozone’s latest retail sales figures show a rebound in consumer spending in February.
US dollar (USD) lifted by upbeat jobs report
The US dollar (USD) experienced choppy trade on Friday, slipping against fellow safe-havens but rebounding against riskier currencies.
This recovery was fuelled by a stronger-than-forecast US payrolls report, which bolstered hopes that the labour market remains resilient despite economic headwinds.
That said, the greenback’s gains may prove short-lived this week as investor unease over Trump’s trade policy continues to stoke fears of a potential US recession.
Canadian dollar (CAD) pressured by weak oil and jobs data
The Canadian dollar (CAD) closed out last week on a bearish note as falling oil prices and a rise in Canada’s unemployment rate weighed heavily on the ‘loonie’.
In the absence of high-impact Canadian data, oil market trends are likely to steer CAD exchange rates in the early part of this week. Continued weakness in crude may exacerbate the currency’s downturn.
Australian dollar (AUD) dragged down by trade angst
The Australian dollar (AUD) stumbled during Monday’s Asian session, with ongoing friction between the US and China sparking concerns over the economic fallout for Australia, one of China’s key trade partners.
New Zealand dollar (NZD) slips amid fragile risk appetite
The New Zealand dollar (NZD) also struggled at the start of the week, losing ground as cautious trading conditions undermined support for the risk-sensitive ‘kiwi’.
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