Pound (GBP) rises amid UK hopes
The pound (GBP) enjoyed strong support at the start of this week’s session, with GBP seemingly supported by the UK’s possible resilience to growing trade tensions.
The Confederation of British Industry’s (CBI) latest distributive trades survey provided the pound with additional support, as it beat forecasts to print at a six-month high in April – although it still pointed to a decline in sales volumes.
Later this morning, Bank of England (BoE) Deputy Governor Dave Ramsden is due to speak. If he says that global trade tensions could be disinflationary for the UK and therefore lead to more interest rate cuts, Sterling could stumble.
Euro (EUR) muted as markets await data
The euro (EUR) was mixed yesterday, wavering slightly lower against its stronger rivals, as EUR investors braced for high-impact data later in the week.
Eurozone GDP and inflation later in the session could significantly impact European Central Bank (ECB) rate cut bets, so some traders opted to hold off placing aggressive bets on the euro on Monday.
Looking ahead, the Eurozone’s economic sentiment index for April is scheduled for release today. Could a decline in morale see EUR slip?
US dollar (USD) slumps amid tariff fears
The US dollar (USD) was initially subdued yesterday as an uncertain mood and hesitancy among USD investors muted the currency.
However, USD then plunged in the evening. An improvement in risk appetite weighed on the safe-haven ‘greenback’, along with a shockingly large slump in manufacturing activity in Texas, with firms blaming tariffs and policy uncertainty.
Today brings the latest JOLTs job openings figures and US consumer confidence report. A decline in job openings and household morale could see USD face further losses.
Canadian dollar (CAD) quiet as election gets underway
The Canadian dollar (CAD) traded in a narrow range yesterday as the polls opened for Canada’s federal election.
Today, CAD could be influenced by the results of the election. As investors favour stability, the apparent win for the Liberals may support the ‘loonie’.
Australian dollar (AUD) rocked by fluctuating market mood
The Australian dollar (AUD) traded in a wide range overnight on Monday, with the ‘Aussie’ initially spiking amid reports of easing US-China trade tensions, before a rebound in the US dollar quickly reversed these gains.
New Zealand dollar (NZD) volatile amid mixed market sentiment
Trade in the New Zealand dollar (NZD) was also erratic in overnight trade amid the mixed market mood.
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