Pound (GBP) slips as Burnham plays down Mahmood speculation
The pound (GBP) stumbled at the end of last week, following Andy Burnham's first speech after being confirmed as leader of the Labour Party.
While Burnham promised to be 'pro-business', markets were left disappointed as he played down recent rumours that Shabana Mahmood is set to be his Chancellor, suggesting he hasn't made any decisions yet on who will be in his 'top team'.
Burnham's first day as Prime Minister is set to be dominated by his cabinet appointments, with any surprises potentially triggering some volatility in Sterling later today. Read more about how Burnham's premiership could impact the pound.
Euro (EUR) gains capped by USD strength
The euro (EUR) trended broadly higher on Friday as the single currency benefitted from the negative shift in risk appetite.
However, the euro's gains remained modest as its upside potential was capped by its inverse trade relationship with the US dollar (USD).
Turning to today's session, the release of Germany's latest producer price index looks set to weigh on EUR today as a cooling of factory gate inflation in the Eurozone's largest economy last month further tempers expectations ahead of this week's European Central Bank (ECB) interest rate decision.
US dollar (USD) strengthened by stock selloff
The US dollar rallied through the end of last week as a global stock market selloff bolstered demand for safe-haven assets.
These gains were then reinforced after the University of Michigan reported a stronger-than-expected improvement in US consumer sentiment this month.
In the absence of any notable domestic economic indicators, the US dollar may prove sensitive to geopolitical developments at the start of this week, potentially extending its bullish momentum as tensions in the Middle East continue to escalate.
Canadian dollar (CAD) bolstered by rising oil prices
The Canadian dollar (CAD) strengthened on Friday as another rise in global oil prices bolstered the commodity-linked currency.
Coming up, Canada's latest consumer price index could weigh on the 'loonie' later today if a slowdown in inflation further reinforces bets the Bank of Canada (BoC) will not follow other central banks in raising interest rates this year.
Australian dollar (AUD) buoyed despite Middle East uncertainty
After some initial weakness, the Australian dollar (AUD) ticked higher through Monday's Asian trading session despite rising geopolitical tensions.
New Zealand dollar (NZD) shrugs off soft trade data
The New Zealand dollar (NZD) also traded with modest gains overnight, with the 'kiwi' seemingly unfazed by a smaller-than-expected domestic trade surplus last month.
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