Pound (GBP) slips as UK fiscal concerns mount
The pound (GBP) edged lower at the end of last week as renewed worries about the UK’s economic outlook weighed on investor sentiment.
A warning from credit ratings agency S&P Global cast a shadow over Sterling after it said the recent setback against welfare reform underscores the ‘formidable’ fiscal challenges facing the UK government.
With few UK economic releases on the calendar to start the week, the pound is likely to remain at the mercy of broader market dynamics.
Euro (EUR) supported by hawkish Lagarde tone
The euro (EUR) firmed on Friday, bolstered by hawkish remarks from European Central Bank (ECB) President Christine Lagarde.
However, these gains were partially offset by news of a steep drop in German factory orders in May, adding to fears about the health of the bloc’s largest economy.
Today, the euro may face pressure if the Eurozone’s latest retail sales figures confirm a contraction in consumer spending last month.
US dollar (USD) edges up despite muted trade
The US dollar (USD) ended last week on a firmer footing, benefitting from a cautious market mood that spurred demand for safe-haven assets.
However, with US markets closed on Friday for Independence Day, trade in the dollar remained subdued, limiting its upside.
Volatility could pick up today as mixed messages from President Donald Trump and the US Commerce Secretary on the reimplementation of reciprocal tariffs fuel market uncertainty.
Canadian dollar (CAD) dragged lower by oil price drop
The Canadian dollar (CAD) weakened on Friday, following a downturn in oil prices that sapped demand for the commodity-linked currency.
With trade-related tensions simmering, crude prices may come under additional pressure, leaving the ‘loonie’ exposed to further losses.
Australian dollar (AUD) tumbles after Trump tariff threat
The Australian dollar (AUD) fell sharply in overnight trade after US President Donald Trump threatened to impose tariffs on countries aligning themselves with BRICS policies.
New Zealand dollar (NZD) weakens as risk appetite fades
The New Zealand dollar (NZD) also declined overnight, as fresh tariff uncertainty undermined investor confidence and weighed on risk-sensitive assets.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.