Pound (GBP) remains pressured by fiscal doubts
The pound (GBP) remained firmly on the defensive on Friday, capping off the UK currency’s worst week since the British bond crisis at the start of the year.
The sustained Sterling selling pressure came amid ongoing UK fiscal anxiety and growing uncertainty over the potential contents of Chancellor Rachel Reeves’s autumn budget.
Turning to the start of this week, movement in the pound may be limited today as GBP investors await the release of the UK’s latest jobs report on Tuesday.
Euro (EUR) subdued as Macron holds crunch talks
The euro (EUR) was muted on Friday as French President Emmanuel Macron held crunch talks to find a new Prime Minister and bring an end to the country’s recent political chaos.
Macron met with the leaders of several political parties on Friday in advance of the President’s self-imposed deadline to install a new PM by the end of the week.
Eurozone economic data is in short supply at the start of this week, which may leave the single currency to trade without a strong directional bias today.
US dollar (USD) rocked as Trump threatens ‘massive’ tariffs on China
Trade in the US dollar (USD) was uneven at the end of last week, climbing against its more risk-sensitive peers and slumping against more established currencies, after US President Donald Trump threatened to impose 100% tariffs on China.
Adding to this volatility was the University of Michigan’s latest consumer sentiment index, which reported morale continued to deteriorate in October, albeit at a much more modest pace than forecast.
Meanwhile, the US dollar faces fresh volatility at the start of this week’s session, as Trump already appears to be walking back his threats against China.
Canadian dollar (CAD) bolstered by upbeat jobs report
The Canadian dollar (CAD) rallied on Friday as data showed the Canadian economy added 60,400 jobs last month, significantly outpacing forecasts for a meagre increase of 5,000.
In the absence of any market-moving Canadian data, the direction of the ‘loonie’ at the start of this week is likely to be determined by oil price dynamics. If prices continue to slide, it’s likely to negatively impact CAD sentiment.
Australian dollar (AUD) firms in risk-on trade
The Australian dollar (AUD) got off to a positive start this week as market risk appetite was bolstered by robust Chinese trade figures and an easing of US-China trade tensions.
New Zealand dollar (NZD) limited by disappointing PMIs
The New Zealand dollar (NZD) also appreciated through Monday’s Asian session amid the risk-positive mood, although these gains were capped by underwhelming domestic PMI data.
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