Pound (GBP) steady as UK corporate sentiment weakens
The pound (GBP) traded largely sideways through yesterday’s session as reports pointed to a deterioration in UK business confidence.
Research from KPMG and the Recruitment and Employment Confederation indicated a sharp decline in sentiment at the end of 2025, with companies reining in recruitment plans amid higher costs and lingering uncertainty.
Looking ahead, with little in the way of UK data due today, the pound may find it difficult to establish a clear directional trend.
Euro (EUR) pressured by renewed Greenland rhetoric
The euro (EUR) struggled to gain momentum on Monday after US President Donald Trump reiterated claims that the US would seek control of Greenland, stating it would happen ‘one way or the other’.
The comments prompted investors to attach a higher risk premium to the single currency ahead of scheduled talks between Denmark and the US later this week.
With Eurozone data thin on the ground today, the euro may remain exposed to further fallout from the Greenland dispute.
US dollar (USD) sinks amid doubts over Fed autonomy
The US dollar (USD) got off to a weak start this week following reports that the US Department of Justice has opened a criminal investigation into Federal Reserve Chair Jerome Powell.
Powell suggested the probe stems from his refusal to comply with President Donald Trump’s calls for deeper rate cuts, unsettling USD investors concerned about the central bank’s independence.
Attention remains firmly on the Fed today, as the release of the latest US consumer price index could reinforce rate cut expectations if inflation continued to ease in December.
Canadian dollar (CAD) subdued as oil rebound loses momentum
The Canadian dollar (CAD) was muted on Monday after the recent recovery in oil prices showed signs of stalling.
The ‘loonie’ may stay under pressure if crude prices continue to soften through today’s trading session.
Australian dollar (AUD) weighed down by weak confidence data
The Australian dollar (AUD) struggled to gain ground overnight on Monday, after an unexpected fall in domestic consumer confidence undermined sentiment.
New Zealand dollar (NZD) lifted by improving business outlook
The New Zealand dollar (NZD) edged higher in overnight trade as investors welcomed a surprise jump in domestic business confidence during the final quarter of 2025.
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