Pound (GBP) sinks after surprise GDP drop
The pound (GBP) came under pressure late last week as UK GDP data revealed an unexpected 0.1% decline in May.
This marked the second straight month of negative growth, reinforcing expectations that the Bank of England (BoE) could lower interest rates as soon as August.
Sterling remains subdued this morning, following comments from BoE Governor Andrew Bailey to The Times, suggesting the bank could move faster on rate cuts if labour market conditions worsen.
Euro (EUR) struggles as USD strength weighs
The euro (EUR) edged up on Friday, with risk-off sentiment driving interest in safe-haven currencies.
However, gains were held in check by the euro’s negative correlation with a firming US dollar (USD).
EUR starts the week on a soft note after US President Donald Trump declared that, beginning 1 August, all EU imports will be hit with a 30% tariff.
US dollar (USD) climbs amid renewed trade fears
The US dollar rallied late last week as renewed trade worries dented investor confidence.
This came in response to a social media post by Trump threatening sweeping new tariffs of 15–20% on all US trading partners starting in August.
With trade uncertainty lingering, USD investors are likely to remain focused on further developments in the days ahead.
Canadian dollar (CAD) slips as tariff threat overshadows jobs data
The Canadian dollar (CAD) faltered on Friday after Trump’s vow to levy a 35% tariff on Canadian imports overshadowed a surprise dip in domestic joblessness.
Unless significant progress is made on trade negotiations, tensions with the US may continue to weigh on the ‘loonie’ early this week.
Australian dollar (AUD) drifts on weak Chinese import data
The Australian dollar (AUD) remained flat through Monday’s Asian session as a modest rebound in Chinese imports fell short of forecasts, dampening sentiment around the ‘Aussie’.
New Zealand dollar (NZD) softens on downbeat services report
The New Zealand dollar (NZD) edged lower overnight as the country’s services index stayed in contraction territory for a fifth consecutive month.
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