Pound (GBP) climbs on strong growth reading
The pound (GBP) closed on a positive note last week following the release of encouraging UK GDP data, which showed the economy expanded by 0.5% in February.
Despite the headline growth, analysts cautioned that the figure does not account for the economic strain of ongoing global trade tensions under President Trump, limiting further upside for Sterling.
Attention now turns to the UK’s latest employment report, due in the coming days. Could signs of resilience in the labour market push back expectations for Bank of England (BoE) rate cuts and give the pound a further boost?
Euro (EUR) strengthens as USD weakens
The euro (EUR) rose sharply on Friday, carried higher by its inverse relationship with the weakening US dollar (USD).
As confidence in the ‘greenback’ faltered, traders shifted towards alternative safe-haven assets, including the single currency, helping the euro gain ground.
If pressure on the US dollar persists, the euro may continue to benefit as the new week unfolds.
US dollar (USD) drops on political turbulence
The US dollar slumped to its lowest level in three years at the end of last week, dragged down by mounting concerns over US economic policy.
Fears over the Fed’s independence resurfaced after reports that President Trump had asked the Supreme Court to grant him powers to dismiss Federal Reserve Chair Jerome Powell.
Looking ahead, the dollar remains exposed to further losses, particularly after Trump appeared to walk back suggestions of exempting smartphones and electronics from upcoming tariffs.
Canadian dollar (CAD) slips on oil weakness
The Canadian dollar (CAD) lost ground on Friday as renewed pressure on oil prices weighed on the commodity-sensitive currency.
With little domestic data on the calendar, the ‘loonie’ may remain closely tied to the direction of global crude markets in the short term.
Australian dollar (AUD) struggles amid weak China trade
The Australian dollar (AUD) held steady during Monday’s Asian session as investors digested news of another sizeable drop in Chinese imports, raising fresh concerns over demand from Australia’s largest trading partner.
New Zealand dollar (NZD) flat as trade worries persist
The New Zealand dollar (NZD) failed to make meaningful gains overnight, with lingering global trade tensions continuing to cap investor appetite for the risk-sensitive currency.
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