Pound (GBP) slips amid UK economic concerns
The pound (GBP) came under pressure at the start of the week, with a lack of notable data leaving Sterling unsupported.
In the absence of data, GBP investors focused on the fragility of the British economy and concerns about how another inflation shock could negatively impact the UK.
Sterling could struggle today after the final UK GDP figures for the fourth quarter of 2025 confirmed that the British economy grew just 0.1% at the end of last year.
Euro (EUR) unclear despite ECB rate hike bets
The euro (EUR) was mixed on Monday, with EUR weakening against stronger rivals despite a jump in German inflation prompting bets on a European Central Bank (ECB) interest rate hike in April.
The common currency’s strong negative correlation with the US dollar (USD) undermined EUR, while a decline in Eurozone economic sentiment in March also stifled the euro’s potential.
The key focus for EUR investors today will be the Eurozone’s preliminary consumer price index for March. An expected surge in inflation could further boost bets on a rate hike from the ECB in April, potentially supporting EUR.
US dollar (USD) extends upside as geopolitical uncertainty persists
The US dollar wavered higher yesterday as ongoing geopolitical uncertainty continued to boost demand for the safe-haven currency.
Despite some cautious optimism that peace talks may soon take place, worries about possible US attacks on Iranian energy sites saw oil prices surge, raising concerns about the impact on the global economy.
This afternoon, the latest US Job Opening and Labor Turnover Survey (JOLTS) is due out. A decline in the number of job openings in February could weigh on USD.
Canadian dollar (CAD) buoyed by higher oil prices
The crude-linked Canadian dollar (CAD) firmed yesterday as oil prices retouched their recent highs. CAD was also able to sustain its upside despite energy prices cooling later in the session.
Canada’s latest GDP figures could influence the ‘loonie’ today. If they show that domestic growth remained anaemic at the start of 2026, CAD could weaken.
Australian dollar (AUD) choppy amid RBA minutes
The Australian dollar (AUD) wavered overnight, as the Reserve Bank of Australia’s (RBA) meeting minutes showed that some policymakers remain cautious about further rate hikes.
New Zealand dollar (NZD) weakens as business confidence crumbles
The New Zealand dollar (NZD) trended lower last night after New Zealand’s business confidence index plunged from 59.2 in February to 32.5 in March, its worst reading since July 2024.
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