Pound (GBP) dented by rising UK borrowing costs
The pound (GBP) struggled to gain traction at the start of this week amid a fresh rise in UK government borrowing costs.
10-year gilt yields were pushed close to 5% and struck their highest levels in over two weeks amid the risk posed by persistent inflationary pressures and rising interest rates around the globe.
In the absence of any notable UK economic indicators, movement in the pound may remain linked to UK bond market trends through today’s session.
Euro (EUR) gains capped as German factory orders slump
The euro (EUR) firmed on Monday, underpinned by its strong negative correlation with the US dollar (USD).
However, the single currency’s upside potential remained limited after data showed that German factory orders fell more than expected in April.
Turning to today’s session, the euro may catch bids after Germany reported a surprise acceleration in exports in April.
US dollar (USD) retreats as Iran concludes offensive operations against Israel
The US dollar ultimately weakened yesterday as an easing of Middle East tensions reversed the safe-haven currency’s initial gains.
The rebound in market sentiment also appeared to trigger some profit-taking in the ‘greenback’, after enjoying a strong end to last week’s session on the back of impressive US payrolls data.
Looking ahead, the US dollar is under fresh pressure this morning after US President Donald Trump declared the US and Iran are in the ‘final throes’ of peace negotiations.
Canadian dollar (CAD) slips as oil prices retreat
The Canadian dollar (CAD) ticked lower on Monday after an initial upswing in oil prices was swiftly reversed amid an easing of tensions in the Middle East.
Meanwhile, movement in the ‘loonie’ may be limited today as CAD investors brace for the Bank of Canada’s (BoC) upcoming interest rate decision.
Australian dollar (AUD) gains tempered by continued decline in morale
While a risk rally helped to buoy the Australian dollar (AUD) overnight on Monday, these gains were capped as Australia reported a further deterioration in consumer and business confidence.
New Zealand dollar (NZD) rallies in risk-positive trade
The New Zealand dollar (NZD) jumped in overnight trade as hopes for a Middle East peace deal stoked demand for high-yield assets.
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.
