Pound (GBP) finishes week on stronger footing
The pound (GBP) ended last week with modest gains, edging higher against most of its major counterparts.
Sterling lacked an obvious catalyst for the move, however, leaving its advance relatively limited through Friday’s session.
With the UK economic calendar looking particularly quiet, broader developments across currency markets are likely to provide the main source of direction for the pound at the start of this week.
Euro (EUR) subdued as German confidence deteriorates
The euro (EUR) struggled to find momentum on Friday after Germany released its latest consumer confidence figures.
The survey showed household morale weakened heading into October, with confidence falling to a five-month low as concerns over household incomes increased.
With no significant Eurozone data due today, the single currency could remain rangebound through the opening stages of the session.
US dollar (USD) pressured by renewed yen strength
The US dollar (USD) lost ground towards the end of last week as a sharp rebound in the Japanese yen (JPY) fuelled speculation that Japanese authorities could intervene in currency markets.
The ‘greenback’ was also weighed down by figures showing that US durable goods orders failed to grow in August.
Looking ahead, the US dollar could regain some ground today as a fresh surge in oil prices weighs on broader market sentiment and supports demand for safe-haven assets.
Canadian dollar (CAD) weakened as crude prices retreat
The Canadian dollar (CAD) moved lower on Friday as falling oil prices reduced demand for the commodity-sensitive currency.
The ‘loonie’ could reverse these losses at the beginning of this week, however, with crude prices jumping after US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz.
Australian dollar (AUD) subdued ahead of RBA decision
The Australian dollar (AUD) began this week’s Asian session under pressure as investors adopted a cautious stance ahead of the Reserve Bank of Australia’s (RBA) upcoming interest rate decision.
New Zealand dollar (NZD) steady after US-China trade truce extended
The New Zealand dollar (NZD) was broadly stable overnight as markets welcomed news that the US and China had agreed to extend their trade truce through to 2027.
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