Pound (GBP) undermined by pre-budget jitters
The pound (GBP) softened yesterday as anxiety ahead of the upcoming budget undermined confidence in the currency.
These concerns were amplified by comments from former Bank of England (BoE) Chief Economist Andy Haldane, who argued that budget uncertainty is ‘the single biggest reason why growth has flatlined’ in the latter half of 2025.
Today’s release of the Confederation of British Industry’s (CBI) distributive trades index may offer only a brief distraction, with another fall in UK retail sales volumes likely to heap further pressure on Sterling.
Euro (EUR) buoyed by Ukraine peace hopes
The euro (EUR) firmed on Monday, lifted by renewed optimism for progress in the Ukraine-Russia peace negotiations.
This helped the single currency brush aside this month’s unexpected slump in German business morale.
Looking forward, confirmation that Germany’s economy stagnated in the third quarter, following a contraction in Q2, may create headwinds for the euro today.
US dollar (USD) pressured by renewed Fed rate bets
The US dollar (USD) retreated at the beginning of the week as a dovish shift in Federal Reserve expectations pushed the probability of a December rate cut up to 75%.
Adding to the downward pressure on the ‘greenback’ was improving sentiment surrounding a potential Ukraine-Russia peace accord.
Later today, September’s US retail sales data could drag on USD demand further if the figures indicate slower monthly growth.
Canadian dollar (CAD) subdued amid soft oil prices
The Canadian dollar (CAD), closely tied to commodities, slipped on Monday as oil prices extended their decline amid rising hopes for an end to the conflict in Ukraine.
If crude benchmarks continue trending lower, the ‘loonie’ may struggle to find support through today’s session.
Australian dollar (AUD) muted amid regional tensions
The Australian dollar (AUD) was quiet in overnight trade on Monday as ongoing strains between China and Japan kept investors cautious.
New Zealand dollar (NZD) dips ahead of expected RBNZ rate cut
The New Zealand dollar (NZD) weakened during the Asia-Pacific session, with NZD investors adopting a cautious stance before Wednesday’s upcoming Reserve Bank of New Zealand (RBNZ) interest rate announcement.
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.