Pound (GBP) slips amid UK political strain
The pound (GBP) weakened yesterday, as persistent political uncertainty in the UK weighed on demand for the currency.
GBP investors were unsettled by renewed doubts surrounding Prime Minister Keir Starmer’s leadership and control of the Labour Party, after two senior aides stepped down within the space of a single day.
With no major UK data on the calendar, Sterling could remain exposed to further downside if political pressure on Starmer intensifies.
Euro (EUR) supported by softer USD
The euro (EUR) advanced on Monday, with its inverse correlation to the US dollar (USD) providing a tailwind for the single currency.
EUR sentiment also drew support from the Eurozone’s latest Sentix investor confidence survey, which showed morale rising to a seven-month high in February.
With little EUR data due today, movement in the euro is likely to be driven by broader FX dynamics.
US dollar (USD) weighed down by JPY strength and jobs worries
The US dollar slipped at the start of the week as renewed strength in the Japanese yen (JPY) dampened demand for USD.
Further pressure on the ‘greenback’ came from mounting concerns over US labour market resilience ahead of Wednesday’s closely watched non-farm payroll release.
Later today, the US publishes its latest retail sales figures, with evidence of robust consumer spending potentially helping the US dollar recover some of Monday’s losses.
Canadian dollar (CAD) lifted by higher oil prices
The commodity-linked Canadian dollar (CAD) found modest support on Monday, aided by an increase in oil prices.
Should this upward momentum in oil persist, the ‘loonie’ may be able to extend its gains through Tuesday’s session.
Australian dollar (AUD) weakens as confidence dips
The Australian dollar (AUD) edged lower overnight on Monday after domestic consumer confidence fell for a third straight month in February.
New Zealand dollar (NZD) eases in risk-averse mood
The New Zealand dollar (NZD) also softened in overnight trade, as a cautious market environment reduced appetite for the risk-sensitive currency.
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