Pound (GBP) edges higher despite UK economic concerns
The pound (GBP) advanced at the start of the week, with the currency strengthening in the absence of any major UK economic developments.
This uptick in GBP came despite persistent concerns over the state of the UK economy, following a string of disappointing data releases in recent weeks.
Looking ahead, the pound could face some volatility with the publication of the Bank of England’s (BoE) consumer credit figures. Any signs of faltering household spending in June may weigh on Sterling sentiment.
Euro (EUR) dips as EU-US trade deal underwhelms
The euro (EUR) initially rose on Monday after the announcement of a long-awaited trade agreement between the EU and US.
However, the early boost quickly faded as the fine print of the deal failed to live up to investor expectations, prompting a pullback in the euro.
Criticism from key EU nations such as France and Germany has added to the uncertainty surrounding the agreement and could continue to drag on the euro in today’s trade.
US dollar (USD) climbs on optimism over trade and Fed policy
The US dollar (USD) pushed higher on Monday, lifted by relief over the new US trade agreement with the EU.
The greenback also found support from rising expectations that the Federal Reserve may maintain elevated interest rates for longer, amid recent robust US economic data.
However, USD may encounter headwinds later today if the latest JOLTs job report shows a notable decline in vacancies, pointing to potential cracks in the labour market.
Canadian dollar (CAD) climbs alongside crude oil gains
The Canadian dollar (CAD) strengthened on Monday, buoyed by a continued rise in oil prices, with the commodity-linked currency closely tracking the movement in crude markets.
Should oil prices extend their rally, the ‘loonie’ could remain on a positive trajectory through the remainder of the session.
Australian dollar (AUD) drifts lower on cautious sentiment
The Australian dollar (AUD) remained on the back foot during Monday night’s trade as investors showed caution ahead of renewed US-China trade negotiations and a stronger US dollar dampened risk appetite.
New Zealand dollar (NZD) softens in risk-averse trade
The New Zealand dollar (NZD) also slipped in overnight trade, with broader risk-off sentiment prompting investors to steer clear of risk-sensitive assets.
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