Pound (GBP) subdued amid ongoing political jitters
The pound (GBP) remained under pressure on Friday, with Sterling still reeling after a difficult week for the UK currency.
Persistent political uncertainty continued to drag on GBP exchange rates, following signs that Greater Manchester Mayor Andy Burnham could seek a return to parliament in order to challenge Prime Minister Keir Starmer.
Looking ahead, speeches from two Bank of England (BoE) policymakers may influence GBP today. Suggestions that further interest rate hikes could be on the horizon may lend the pound some support. However, Sterling could weaken if the BoE officials express concern over the UK’s current fiscal and economic outlook.
Euro (EUR) mixed amid thin data
The euro (EUR) traded without a clear direction on Friday, as a lack of Eurozone economic releases left the single currency adrift.
While the safer euro managed to hold firm against riskier currencies, EUR lost ground against its stronger counterparts.
Eurozone data remains limited at the start of this week’s session, potentially leaving the euro without a clear directional bias once again.
US dollar (USD) firms after strong week
The US dollar (USD) extended its upside on Friday, as persistent risk aversion continued to underpin demand for the safe-haven ‘greenback’.
Federal Reserve interest rate expectations also bolstered the American currency, with markets increasingly pricing in a rate hike as the Fed looks to curb rising inflation.
Risk sentiment could drive USD movement today. If the market mood remains gloomy, the ‘greenback’ may strengthen further.
Canadian dollar (CAD) supported by elevated oil prices
The crude-linked Canadian dollar (CAD) remained firm at the end of last week, underpinned by strong oil prices.
Oil price dynamics remain the key focus for CAD investors today. Could continued strength in crude help the Canadian dollar climb?
Australian dollar (AUD) fluctuates amid cautious trade
The Australian dollar (AUD) slipped at the start of this week’s session as a risk-off mood weighed on the currency, although it has since managed to recover these losses.
New Zealand dollar (NZD) choppy after mixed PMI
The New Zealand dollar (NZD) has also endured an uneven start to the week, after New Zealand’s latest services PMI beat forecasts but still pointed to a contraction in activity in April.
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