Pound (GBP) slides amid lingering fiscal concerns
The pound (GBP) ended last week on the back foot, rounding off its weakest performance since the UK bond selloff earlier this year.
Persistent uncertainty surrounding the government’s fiscal position, coupled with speculation over what Chancellor Rachel Reeves may unveil in her upcoming autumn budget, continued to weigh heavily on Sterling sentiment.
Looking ahead, GBP movement may be subdued today as investors await tomorrow’s release of the UK’s latest labour market figures.
Euro (EUR) steady as Macron seeks new Prime Minister
The euro (EUR) traded without much direction on Friday as investors monitored political developments in France, where President Emmanuel Macron held key discussions to appoint a new Prime Minister and restore stability.
Macron met with several party leaders in a bid to end the recent political impasse, ahead of his self-imposed deadline to name a successor by the end of the week.
With a quiet Eurozone economic calendar to start the week, the euro may continue to drift without a clear sense of direction today.
US dollar (USD) volatile as Trump hints at major China tariffs
The US dollar (USD) traded erratically at the close of last week, firming against risk-sensitive currencies but softening versus its safe-haven peers, after President Donald Trump vowed to introduce 100% tariffs on Chinese imports.
Adding to USD fluctuations, the University of Michigan’s consumer sentiment index showed confidence declined in October, though by less than anticipated.
At the start of this week, the greenback could remain choppy as Trump appears to be backtracking on his aggressive trade stance toward China.
Canadian dollar (CAD) climbs after strong employment data
The Canadian dollar (CAD) strengthened on Friday following a robust labour market report, which revealed a gain of 60,400 jobs in September, far exceeding expectations of a tiny 5,000 increase.
With no major Canadian data due early this week, oil price movements will likely guide CAD direction. A continued drop in crude prices could dampen demand for the commodity-linked currency.
Australian dollar (AUD) boosted by improved risk sentiment
The Australian dollar (AUD) advanced at the start of the week, supported by upbeat Chinese trade data and signs of easing trade tensions between the US and China.
New Zealand dollar (NZD) edges higher amid cautious optimism
The New Zealand dollar (NZD) also benefited from the brighter market mood in Monday’s Asian session, though gains were tempered by another disappointing domestic PMI reading.
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