Pound (GBP) pressured by UK-US trade uncertainty
The pound (GBP) opened this week on the defensive amid fresh concerns that a UK-US trade deal may be slipping further out of reach.
While the UK continues to push for tariff exemptions, speculation is growing that it may introduce retaliatory measures, fuelling fears of a broader trade conflict.
Looking ahead, the pound may remain under pressure unless there are signs of progress towards de-escalating tensions between London and Washington.
Euro (EUR) gains on upbeat retail sales data
The euro (EUR) advanced on Monday, with the single currency drawing support from cautious investors amid persistent global uncertainty.
The euro also benefitted from a rebound in Eurozone retail sales, which lent some support to the currency despite the recovery falling short of forecasts.
Today, EUR investors will be watching a speech by European Central Bank (ECB) Vice-President Luis de Guindos. A dovish message in response to global trade risks could see the euro dip.
US dollar (USD) buoyed by market volatility
The US dollar (USD) was bolstered at the start of the week as nervous investors favoured safe-haven assets amid a continued selloff in global stock markets.
However, the US dollar’s upside was capped against fellow safe-haven currencies, as concerns over the US economy’s outlook limited investor confidence in the ‘greenback’.
Trump’s tariff policies remain in focus today, with ongoing fears over recession risk likely to shape USD movement.
Canadian dollar (CAD) dragged lower by falling crude prices
The Canadian dollar (CAD) remained under pressure on Monday as a continued drop in oil prices weighed on the commodity-tied currency.
Unless we see a recovery in energy markets, the ‘loonie’ looks set to remain on the back foot through today’s session.
Australian dollar (AUD) rallies on upbeat sentiment
The Australian dollar (AUD) strengthened in overnight trade, with improved risk appetite helping to offset jitters over a possible escalation in US-China trade tensions.
New Zealand dollar (NZD) firm amid risk recovery
The New Zealand dollar (NZD) also advanced as the positive shift in market sentiment saw investors return to riskier assets like the ‘kiwi’.
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