Pound (GBP) underpinned by upbeat data
The pound (GBP) stabilised at the end of last week as GBP investors welcomed a burst of robust UK economic indicators.
The UK's latest retail sales and services PMI both surprised to the upside, helping to lift some of the malaise that has hung over the UK economy in recent months.
The Confederation of British Industry (CBI) will publish its latest distributive trades index later today, which could crystallise Sterling support if it also points to an uptick in UK retail activity this month.
Euro (EUR) slips despite robust PMIs
The euro (EUR) trended broadly lower at the end of last week, despite the Eurozone's preliminary PMIs for July beating consensus forecasts.
The pullback appeared linked to European energy concerns, amid growing fears of potential gas shortages in the winter.
Today sees the release of Germany's latest IFO business climate index, which could extend support to the euro if sentiment continued to improve this month.
US dollar (USD) knocked by fresh Trump tariffs
The US dollar (USD) initially drifted lower on Friday, being dented by fresh US trade uncertainty as President Donald Trump imposed new tariffs on 60 US trading partners.
However, the 'greenback' was able to stabilise by the end of the session after the latest US S&P PMIs outpaced expectations in July.
Looking ahead, the US dollar may face fresh pressure this morning, amid a pause in hostilities between the US and Iran and reports of a potential ceasefire.
Canadian dollar (CAD) dented by softer oil prices
The Canadian dollar (CAD) ticked lower on Friday, pressured by both a softening of oil prices as well as a much weaker-than-forecast domestic PPI reading.
Expect movement in CAD to remain tied to oil price dynamics at the start of this week, with the 'loonie' likely to extend its losses following a 6% slump in crude this morning.
Australian dollar (AUD) rallies on Middle East ceasefire hopes
The Australian dollar (AUD) strengthened through Monday's Asian trading session, buoyed by the positive shift in risk appetite amid the pause in fighting in the Middle East.
New Zealand dollar (NZD) firms in risk-positive trade
The New Zealand dollar (NZD) also benefitted from an uptick in risk sentiment in overnight trade, although its gains were more modest than the 'Aussie'.
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