Pound (GBP) buoyed by hopes for closer UK-EU ties
The pound (GBP) appreciated against the majority of its peers at the start of this week amid fresh hopes for future UK-EU relations.
This followed remarks from Prime Minister Andy Burnham, who claimed that rejecting a closer relationship with the European Union would amount to a 'dereliction of duty'.
Sterling may build on these gains today after the International Monetary Fund (IMF) upgraded its UK growth forecast for 2026.
Euro (EUR) extends French-debt selloff
The euro (EUR) remained on the defensive on Monday as it continued to be undermined by France's debt crisis.
Government borrowing costs continued to rise yesterday, amid doubts that it will be able to push a proposed €43bn in spending cuts through parliament.
France's parliament will begin its debate on the government budget later today, where opposition to its new fiscal plans could pile more pressure on the euro.
US dollar (USD) firms amid geopolitical uncertainty
The US dollar (USD) opened this week's session on positive footing, amid an uptick in demand for safe-haven assets.
This followed a fresh wave of geopolitical uncertainty, linked to concerns over energy flows through the Red Sea, as well as a very tenuous ‘energy ceasefire’ between Russia and Ukraine.
However, with sentiment beginning to improve, the US dollar may struggle to maintain its bullish momentum through today’s session.
Canadian dollar (CAD) strengthened by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Monday, as global oil prices accelerated to a fresh two-week high.
Meanwhile, a pullback in energy prices this morning may see the 'loonie' relinquish some of this support today.
Australian dollar (AUD) strengthens following RBA minutes
The Australian dollar (AUD) appreciated in overnight trade after the minutes from the Reserve Bank of Australia's (RBA) September meeting signalled an openness to continue hiking interest rates.
New Zealand dollar (NZD) underpinned by positive risk flows
The New Zealand dollar (NZD) also strengthened overnight on Monday amid a positive shift in market risk appetite.
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