Pound (GBP) slides as UK hints at US tariff retaliation
The pound (GBP) found itself on the back foot against many of its peers at the end of last week.
This pullback in GBP exchange rates appeared linked to waning hopes for a UK-US trade deal, as the UK government took the first steps towards retaliating against US President Donald Trump’s protectionist trade policies.
UK economic data is in short supply today, which may see Sterling remain on the defensive if market risk appetite remains downbeat.
Euro (EUR) underpinned by skittish market mood
The euro (EUR) trended broadly higher on Friday as ongoing market turmoil bolstered demand for the safe-haven currency.
However, tempering these gains was Germany’s latest factory orders data, which fell short of expectations and reported order growth flatlined in February.
The start of this week sees the publication of the Eurozone’s latest retail sales figures. If sales growth rebounded as expected in February, it may provide some support for the single currency.
US dollar (USD) rebounds on impressive payroll figures
Trade in the US dollar (USD) was mixed at the end of last week, with the ‘greenback’ initially retreating against most of its other safe-haven peers but recouping some of the previous day’s losses against more risk-sensitive currencies.
However, the ‘greenback’ was able to bounce back later in the session after the latest US payroll figures smashed expectations.
Turning to this week, the US dollar is on the defensive again as the turmoil created by Trump’s reciprocal tariffs continues to dominate markets and analysts warn the odds of the US slipping into a recession this year are growing.
Canadian dollar (CAD) falls as oil prices tumble
The Canadian dollar (CAD) retreated on Friday, with the commodity-linked currency being undermined by another sharp decline in oil prices as well as a rise in domestic unemployment last month.
Looking ahead, the direction of the ‘loonie’ may remain tied to oil price dynamics at the start of this week. If crude prices continue to decline, the CAD selloff is likely to remain firmly in place.
Australian dollar (AUD) slumps amid US-China trade tensions
The Australian dollar (AUD) retreated through Monday’s Asian trading session as trade tensions between the US and China took their toll on the ‘Aussie’ due to concerns over how the ripple effects will impact Australia.
New Zealand dollar (NZD) slides in risk-off trade
The New Zealand dollar (NZD) also weakened at the start of this week’s session as the skittish market mood left investors to shy away from the ‘kiwi’.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
