Pound (GBP) slides amid pressure on Starmer
The pound (GBP) got off to a subdued start this week amid fresh doubts over the future of Prime Minister Keir Starmer.
While Starmer delivered a defiant speech vowing to fight on, reports that a growing number of Labour MPs are pushing for his resignation left Sterling deflated.
UK political uncertainty will no doubt remain the primary catalyst of movement for GBP today, with the pound already under pressure amid reports that members of Starmer’s cabinet have also called for him to step down.
Euro (EUR) rangebound in mixed trade
The euro (EUR) traded in a narrow range on Monday, with the single currency lacking clear direction amid an uncertain market mood.
This was compounded by the absence of any notable Eurozone economic indicators at the start of the week.
The release of Germany’s latest ZEW economic sentiment index may offer fresh direction for EUR today, with the euro likely to weaken if morale in the Eurozone’s largest economy continued to deteriorate this month.
US dollar (USD) firms as peace hopes dashed
The US dollar (USD) edged higher yesterday as hopes for an imminent US-Iranian peace agreement began to fade.
Recent peace optimism was dashed after US President Donald Trump branded Tehran’s response to a proposed peace framework as ‘totally unacceptable’.
Turning to today’s session, the spotlight is on the latest US consumer price index, with another acceleration of inflation potentially strengthening USD demand.
Canadian dollar (CAD) buoyed by rising oil prices
The commodity-linked Canadian dollar (CAD) strengthened on Monday as renewed tensions in the Middle East propelled global oil prices back above $100 a barrel.
Expect the ‘loonie’ to maintain a positive trajectory today if oil prices continue to appreciate.
Australian dollar (AUD) slides as business confidence remains strained
The Australian dollar (AUD) retreated through Tuesday’s Asian trading session, as Australia’s latest business confidence index showed morale continued to deteriorate through April.
New Zealand dollar (NZD) pressured by risk-off flows
The New Zealand dollar (NZD) also weakened in overnight trade as uncertainty in the Middle East weighed on market risk appetite.
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