Pound (GBP) buoyed as Burnham concerns continue to ease
The pound (GBP) traded with modest support at the end of last week’s session, with most GBP pairings apart from GBP/EUR trending higher.
Sterling sentiment improved as political jitters continued to recede, amid increasing confidence that Andy Burnham won’t tear up Rachel Reeves’s fiscal rules should he lead the next government.
Expect GBP investors to keep an eye on UK political developments at the start of this week, with Burnham set to deliver a major policy speech today.
Euro (EUR) buoyed by safe-haven flows
The euro (EUR) ticked higher on Friday, with the safe-haven single currency catching bids amid wider market jitters.
The upside in EUR was also supported by its negative correlation with the US dollar (USD), as the latter stumbled at the end of the week.
The start of the European Central Bank’s (ECB) annual Sintra Forum will be the focus for EUR investors today as they look for any hints as to how the bank will shape monetary policy in the coming months.
US dollar (USD) dented by profit-taking
The US dollar closed last week’s session on the defensive as investors looked to book their profits, following the currency’s bullish run earlier in the week.
However, these losses were cushioned somewhat by ongoing turbulence in equity markets amid the tech stock selloff.
In the absence of any notable US economic releases, the ‘greenback’ may be driven by wider market trends at the start of this week.
Canadian dollar (CAD) slips on softer oil prices
The Canadian dollar (CAD) retreated on Friday as the continued pullback in oil prices limited the appeal of the commodity-linked currency.
Movement in the ‘loonie’ is likely to remain tied to oil price dynamics at the start of this week, potentially leading to further losses if prices remain suppressed.
Australian dollar (AUD) rangebound in cautious trade
The Australian dollar (AUD) struggled to attract support through the start of this week’s session as fresh clashes between the US and Iran over the weekend raised doubts over ongoing peace talks between the two nations.
New Zealand dollar (NZD) firms despite risk-off flows
The New Zealand dollar (NZD), in contrast to its antipodean cousin, caught bids through Monday’s Asian trading session, despite the broadly risk-averse market mood.
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