Pound (GBP) rangebound ahead of key data
The pound (GBP) treaded water at the start of this week as GBP investors braced for a series of high-impact UK economic releases.
This week's stretch of data will be closely watched by markets as they seek to gauge how aggressively the Bank of England (BoE) will cut interest rates in the coming months.
The first data release has put notable pressure on Sterling this morning, as the UK’s latest jobs report showed that unemployment unexpectedly rose to a five-year high of 5.2% at the end of 2025.
Euro (EUR) muted on weak industrial data
The euro (EUR) was subdued yesterday, following the publication of the Eurozone’s latest industrial production figures.
Data published by Eurostat showed factory output in the bloc slumped from 0.3% to -1.4% in December, slightly ahead of a forecast 1.5% decline but still striking its worst levels since April.
Meanwhile, Germany’s latest ZEW economic sentiment index could revive EUR sentiment today, if it shows morale continued to improve this month.
US dollar (USD) flat amid thin trading conditions
The US dollar (USD) was also confined to a narrow range yesterday as US markets closed for President’s Day, resulting in thin trading conditions for the currency.
This limited the currency’s gains, despite a broadly risk-averse market mood.
Coming up, the release of the New York Empire State manufacturing index could exert pressure on USD today if it reports a decline this month.
Canadian dollar (CAD) demand softens as oil prices stall
The Canadian dollar (CAD) traded with modest losses on Monday as stalling oil prices tempered demand for the commodity-linked currency.
Canada will publish its latest consumer price index later today. If inflation ticked higher again in January it is likely to cement expectations the Bank of Canada (BoC) will keep interest rates on hold through 2026 and underpin the ‘loonie’.
Australian dollar (AUD) wavers in mixed trade
The Australian dollar (AUD) fluctuated overnight on Monday amid shifting market sentiment and the release of the minutes from the Reserve Bank of Australia’s (RBA) February policy meeting.
New Zealand dollar (NZD) fluctuates amid uneven mood
The New Zealand dollar (NZD) also traded erratically overnight amid the volatile market mood.
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