Pound (GBP) muted on downbeat UK growth forecast
The pound (GBP) drifted lower yesterday as projections pointing to a marked cooling in UK economic expansion for 2026 kept Sterling on the back foot.
KPMG analysts anticipate the UK will grow by only 1% next year, with rising unemployment and subdued consumer confidence expected to sap momentum.
With no significant UK data releases scheduled today, the pound may struggle to find a clear sense of direction.
Euro (EUR) buoyed by USD weakness
The euro (EUR) advanced on Monday, with the currency largely propped up by its inverse relationship with a weaker US dollar (USD).
This helped the euro overlook November’s downward revision to the Eurozone manufacturing PMI.
Attention today turns to the Eurozone’s latest consumer price index. The euro may push higher if inflation accelerated last month and bolsters expectations that the European Central Bank’s (ECB) rate-cutting phase has concluded.
US dollar (USD) pressured by dovish Fed bets
The US dollar (USD) opened the week on the defensive amid strengthening expectations that the Federal Reserve will lower interest rates next week.
Further losses followed the release of the latest ISM manufacturing PMI, which revealed a sharper-than-expected downturn in US factory activity last month.
Looking forward, buoyant risk sentiment is likely to constrain any meaningful recovery in the US dollar today.
Canadian dollar (CAD) steady as oil prices rise
The Canadian dollar (CAD) was largely stable on Monday, with the commodity-sensitive currency supported by an uptick in oil prices.
The ‘loonie’ is set to remain reactive to crude market movements throughout the session and could edge higher if the upward trend in oil persists.
Australian dollar (AUD) firms in upbeat trade
The Australian dollar (AUD) strengthened in overnight dealings on Monday, buoyed by improved risk appetite and renewed speculation on a hawkish tilt from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) rangebound despite improving risk appetite
The New Zealand dollar (NZD) moved sideways overnight, with rising market optimism failing to translate into NZD gains as concerns about New Zealand’s economic trajectory kept investors cautious.
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.