Pound (GBP) remains underpinned by upbeat data
The pound (GBP) moved broadly higher yesterday, with Friday’s stronger-than-expected batch of UK economic releases continuing to lend support to Sterling.
Despite this, gains were limited as GBP investors remained cautious amid the political uncertainty surrounding the forthcoming Greater Manchester by-election.
Turning to today, Bank of England (BoE) Governor Andrew Bailey is set to testify before the Treasury committee, with his comments potentially weighing on GBP if he hints at upcoming interest rate cuts.
Euro (EUR) lifted by stronger German business sentiment
The euro (EUR) ticked upward on Monday, buoyed by a further improvement in Germany’s IFO business climate index.
Nevertheless, concerns over the potential fallout from newly announced US tariffs on existing EU–US trade arrangements helped to cap the single currency’s advance.
With Eurozone data releases remaining sparse, the euro may lack direction through today’s trading session.
US dollar (USD) pressured by tariff uncertainty
The US dollar (USD) traded without conviction yesterday as markets grappled with uncertainty surrounding President Trump’s latest tariff measures.
Confusion intensified following a social media post in which Trump warned of introducing ‘far tougher and more aggressive’ trade actions, raising questions over existing agreements and possible import reimbursements.
As a result, tariff-related concerns are likely to remain a key driver of US dollar movement throughout today’s session.
Canadian dollar (CAD) subdued amid oil market swings
The Canadian dollar (CAD) found it difficult to gain traction on Monday, as fluctuations in oil prices weighed on demand for the commodity-linked currency.
Should instability in crude markets continue, the ‘loonie’ may remain under pressure as trading progresses today.
Australian dollar (AUD) supported ahead of inflation data
The Australian dollar (AUD) edged higher during Monday’s overnight session, supported by expectations that upcoming inflation figures will strengthen the case for further policy tightening from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) steady in cautious trade
The New Zealand dollar (NZD) traded within a narrow range overnight as a more cautious market backdrop limited demand for risk-sensitive currencies.
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.