Pound (GBP) gains ground despite quiet calendar
The pound (GBP) advanced against most of its counterparts at the close of last week’s trading session.
Sterling’s appreciation appeared to stem largely from broader weakness elsewhere in the currency market, amid the lack of any domestic trading stimuli.
With UK economic data remaining limited at the start of this week, the pound may struggle to establish a clear direction through today’s session.
Euro (EUR) weakened by downgrade to GDP
The euro (EUR) slipped on Friday after the release of the Eurozone’s latest GDP update.
The revised figures showed first-quarter growth was adjusted down from 0.1% to –0.2%, as Ireland’s economic performance in early 2026 came in weaker than previously estimated.
Germany’s latest factory orders data is set to weigh further on the single currency this week after revealing a steeper-than-forecast fall in demand at the beginning of the second quarter.
US dollar (USD) surges following robust payroll release
The US dollar (USD) initially struggled to find support on Friday before rallying sharply in response to the latest US labour market figures.
The closely watched report revealed the US economy created 172,000 jobs in May, comfortably exceeding forecasts of 85,000 and strengthening bets that the Federal Reserve will tighten monetary policy later in the year.
Attention for USD investors is likely to shift back towards developments in the Middle East this week, with stalled US-Iran negotiations potentially offering further support to the ‘greenback’.
Canadian dollar (CAD) lifted by strong employment figures
The Canadian dollar (CAD) ended last week on firmer footing after Canada’s latest labour market report unexpectedly showed unemployment declined in May.
At the beginning of this week, a notable rise in oil prices is expected to provide additional support for the ‘loonie’.
Australian dollar (AUD) subdued amid cautious sentiment
The Australian dollar (AUD) came under pressure during Monday’s Asian session as renewed geopolitical tensions in the Middle East dampened demand for risk-sensitive assets.
New Zealand dollar (NZD) slips as risk appetite weakens
The New Zealand dollar (NZD) also traded lower overnight as a more cautious market mood reduced investor appetite for risk.
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