Pound (GBP) climbs amid trade deal optimism
The pound (GBP) ended last week on the front foot, buoyed by a brighter outlook for the UK economy.
This came on the back of recent trade agreements with the US and India, alongside growing speculation that a fresh deal with the EU could be finalised in the coming weeks.
Attention now turns to comments from several Bank of England (BoE) officials. If their rhetoric leans hawkish, it could drive further gains for the pound.
Euro (EUR) benefits from dollar downturn
The euro (EUR) appreciated on Friday, capitalising on a broad pullback in the US dollar (USD).
The single currency also bolstered by hopes for greater unity within the EU bloc, after the announcement of a new strategic accord between France and Poland.
With few key releases on the Eurozone calendar today, the euro be driven by wider market trends.
US dollar (USD) pressured by trade policy concerns
The US dollar weakened at the end of last week, weighed down by uncertainty surrounding trade negotiations between the US and China.
Market nerves were exacerbated by President Donald Trump’s comments suggesting an 80% tariff on Chinese goods – far beyond the 60% level markets had expected.
While the White House confirmed a breakthrough in trade talks today, USD gains may remain limited until more concrete details are revealed.
Canadian dollar (CAD) knocked by rise in joblessness
The Canadian dollar (CAD) faltered on Friday, after domestic employment figures showed a unemployment rose to 6.9% in April – likely reflecting the economic impact of new US tariffs.
Should oil prices continue to rally, however, the ‘loonie’ could regain some momentum in early-week trade.
Australian dollar (AUD) rises on trade breakthrough hopes
The Australian dollar (AUD) pushed higher at the start of this week, buoyed by reports that the US and China may have reached a long-awaited trade accord.
New Zealand dollar (NZD) lifted by upbeat market mood
The New Zealand dollar (NZD) also rallied overnight, supported by improving risk appetite on the back of US-China trade optimism.
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