Pound (GBP) climbs on upbeat retail figures
The pound (GBP) strengthened at the end of last week, after UK retail sales figures for April came in significantly above forecasts.
Sterling then saw limited movement at the start of the week, with trading activity subdued due to the UK’s long bank holiday weekend.
In the absence of fresh UK economic releases, the pound could remain directionless in today’s session.
Euro (EUR) wavers amid tariff tensions
The euro (EUR) came under pressure on Friday as former US President Donald Trump threatened to impose a 50% tariff on EU exports starting 1 June.
However, the single currency staged a recovery on Monday, after Trump announced a delay until 9 July, following a ‘very good’ discussion with European Commission President Ursula von der Leyen.
This morning, the euro may face renewed headwinds if the latest Eurozone economic sentiment data shows a further dip in business and consumer confidence.
US dollar (USD) dragged lower by debt concerns
The US dollar (USD) sank late last week, amid growing market unease over soaring US debt levels following the passage of Trump’s expansive tax and spending package.
This selling pressure lingered into the start of this week, with the ‘greenback’ struggling for support as US markets closed for the Memorial Day weekend.
Looking ahead, the release of US durable goods orders may put further strain on USD, with forecasts pointing to a sharp drop in April’s figures, potentially linked to trade tensions.
Canadian dollar (CAD) flat as crude weakens
The Canadian dollar (CAD) traded sideways through the end of last week and into Monday, amid fresh declines in oil prices.
The ‘loonie’ could face additional downside today if crude benchmarks extend their current downward trajectory.
Australian dollar (AUD) dips in risk-off trade
The Australian dollar (AUD) lost ground overnight as deteriorating risk sentiment sapped demand for the risk-sensitive currency.
New Zealand dollar (NZD) pressured by cautious mood
The New Zealand dollar (NZD) also weakened overnight, sliding in step with the ‘Aussie’ as risk aversion gripped the markets.
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