Pound (GBP) trades sideways in quiet trade
The pound (GBP) traded without any strong directional bias at the start of this week, with GBP exchange rates primarily influenced by the movement of the currency’s peers.
Sterling was also left adrift amid uncertainty over whether the UK will align more with the US or the EU and its allies in the event of a transatlantic trade war.
UK data remains in short supply today, potentially leaving the pound to continue to be influenced by wider market trends.
Euro (EUR) subdued as German exports slump
The euro (EUR) got off to a slow start this week, following some lacklustre trade data from Germany.
Data released on Monday showed Germany’s trade surplus shrank to a three-month low in January, following a shockingly sharp slump in exports.
Turning to today’s session, while Eurozone data is thin on the ground, any positive news stemming from US-Ukraine talks could help underpin the euro.
US dollar (USD) muted amid US growth jitters
The US dollar (USD) was muted on Monday, with the currency left to nurse its wounds from last week’s collapse, amid mounting fears over US economic growth.
However, as uncertainty surrounding Donald Trump’s trade policies continued to drag on market risk appetite, this helped put a floor under the ‘greenback’.
Looking ahead, the focus for USD investors today will be on the latest US JOLTs job openings data. If January’s data also points to a softening of the US labour market, we may see fresh concerns over the US economy pile pressure on the US dollar today.
Canadian dollar (CAD) retreats amid US-Canada trade concerns
The Canadian dollar (CAD) slipped through yesterday’s session amid fresh concern over US-Canada trade relations, after incoming Canadian Prime Minister Mark Carney pledged to maintain retaliatory tariffs on US goods until Washington shows Canada ‘respect’.
CAD data is in short supply today, likely leaving the ‘loonie’ vulnerable to ongoing trade war uncertainty.
Australian dollar (AUD) slips in risk-off trade
The Australian dollar (AUD) trended lower in overnight trade as a risk-averse market mood and decline in domestic business sentiment took its toll on the ‘Aussie’.
New Zealand dollar (NZD) pressured amid cautious mood
The New Zealand dollar (NZD) also weakened overnight as a result of the deteriorating market mood.
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