Pound (GBP) shaken by bond market turmoil
The pound (GBP) was subdued through the end of last week’s session amid fresh turmoil in the UK bond market going into the long Easter weekend.
Sterling then remained subdued through the start of this week amid thin trading conditions.
Coming up, the pound may remain muted today, as the UK’s latest services PMI is expected to confirm a sharp slowdown in service sector growth last month.
Euro (EUR) subdued amid Easter lull
The euro (EUR) was left muted through the end of last week, with EUR sentiment being suppressed by thin trading conditions and USD strength.
This lack of liquidity persisted into Monday’s session, leaving the single currency rangebound against most of its peers.
Looking ahead, barring a notable revision to the Eurozone’s latest PMIs, the euro is likely to remain subdued today, amid fresh concerns regarding the Eurozone’s mounting energy price crisis.
US dollar (USD) underpinned by Iran uncertainty
The US dollar (USD) closed last week’s session on solid footing, bolstered by risk-off flows and stronger-than-expected US payrolls.
USD was then choppy on Monday, amid Iran uncertainty and a lacklustre ISM services PMI.
Expect the US dollar to remain sensitive to developments in the Middle East today, as US President Donald Trump’s latest deadline for Iran looms.
Canadian dollar (CAD) fluctuates amid oil price volatility
The Canadian dollar (CAD) traded in a wide range over the Easter period as the commodity-linked currency tracked the fluctuations in oil prices.
Expect movement in the ‘loonie’ to remain closely tied to oil price dynamics today, with a continued rally likely to underpin CAD demand.
Australian dollar (AUD) pressured by Middle East jitters
The Australian dollar (AUD) traded on the defensive through Tuesday’s Asian trading session, with concerns over the situation in the Middle East weakening the appeal of the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) slips in cautious trade
The New Zealand dollar (NZD) was also pressured in overnight trade amid the risk-off flows.
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