Pound (GBP) rebounds as UK data impresses
The pound (GBP) closed last week’s session on a positive note, with the UK’s latest PMI and retail sales both outpacing expectations.
On top of this, the UK also recorded a record budget surplus in January, in what should be a boost for Chancellor Rachel Reeves ahead of her Spring Statement next month.
Turning to the start of this week, a renewed focus on UK politics ahead of the Manchester byelection on Thursday could apply a layer of risk to Sterling.
Euro (EUR) supported by USD weakness
The euro (EUR) traded higher on Friday, benefiting from its negative correlation with the US Dollar (USD).
This upside in EUR was also supported by the Eurozone’s latest PMIs, with February’s preliminary figures reporting the bloc’s manufacturing sector enjoyed its strongest expansion since June 2022.
This week kicks off with the publication of Germany’s latest IFO business climate index, which could provide another boost for the euro if morale improved this month.
US dollar (USD) slides as US Supreme Court Rules Against Trump Tariffs
The US dollar retreated at the end of last week, following the news that US President Donald Trump’s tariffs had been struck down by the US Supreme Court.
USD sentiment was further undermined by the latest US GDP figures, which reported a much sharper-than-expected fall in growth in the last quarter of 2025.
Coming up, USD investors may look to a speech by Fed Policymaker Christopher Waller for fresh impetus today. A hawkish tone could help the US dollar to get off to a strong start this week.
Canadian dollar (CAD) muted despite positive retail sales data
The Canadian dollar (CAD) traded sideways on Friday, with a surprisingly strong rebound in Canadian retail sales last month failing to impress CAD investors.
Looking ahead, the commodity-linked ‘Loonie’ may appreciate at the start of this week, if tensions in the Middle East help drive up oil prices.
Australian dollar (AUD) wobbles amid fresh Trump tariffs
The Australian dollar (AUD) traded in a wide range through today’s Asian trading session as markets reacted to Trump’s announcement of a 15% global tariff, after his previous tariff regime was ruled unconstitutional.
New Zealand dollar (NZD) underpinned by upbeat retail data
The New Zealand dollar (NZD) also fluctuated in overnight trade, but fared a little better than its antipodean cousin as New Zealand’s latest retail sales data surprised to the upside.
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