Pound (GBP) dented by pre-budget jitters
The pound (GBP) ticked lower against the majority of its peers yesterday amid fresh caution ahead of Chancellor John Healey’s inaugural Autumn Budget.
While recent comments from Healey have emphasised his business-friendly approach to the budget, questions remain about what taxes the Chancellor may need to implement to balance the books on Wednesday.
Expect this uncertainty to continue to limit Sterling demand through today's session.
Euro (EUR) steady as German business sentiment improves
The euro (EUR) held its ground on Monday, as Germany's latest IFO business climate index surprised to the upside in October, rising to its best levels since May 2023.
This helped to counter ongoing concerns about France's debt burden and the continued civil unrest in the Eurozone's second-largest economy.
Turning to today's session, the euro may struggle for direction amid a lull in data and a sense of caution ahead of the European Central Bank's (ECB) interest rate decision later in the week.
US dollar (USD) bolstered by risk-off flows
The US dollar (USD) accelerated at the start of this week as a cautious market mood saw more investors favour the safe-haven currency.
However, USD gains remained contained by an ongoing AI selloff, with a fresh fall in tech stocks linked to remarks from Elon Musk regarding data centre funding.
Coming up, an expected rebound in US durable goods orders may help to underpin USD demand when September's figures are published later today.
Canadian dollar (CAD) softens as oil prices dip
The Canadian dollar (CAD) faced selling pressure on Monday as Brent oil prices pulled back from the multi-month highs struck at the end of last week.
While a further correction in oil prices may continue to drag on the 'loonie' today, any losses may be tempered as markets await an expected interest rate hike from the Bank of Canada (BoC) on Wednesday.
Australian dollar (AUD) muted in cautious trade
The Australian dollar (AUD) struggled to attract support overnight on Monday, as a cautious market mood tempered market risk appetite.
New Zealand dollar (NZD) firms ahead of expected rate hike
The New Zealand dollar (NZD) pushed higher in overnight trade, as NZD investors braced for a widely expected interest rate hike from the Reserve Bank of New Zealand (RBNZ) on Wednesday.
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