Pound (GBP) bolstered by retail sales data
The pound (GBP) rallied at the end of last week, as UK retail sales smashed expectations in April.
Sterling then faced thin trading conditions at the start of this week as UK markets closed for the extended bank holiday weekend.
Meanwhile, in the absence of any notable UK economic data, the pound may be left directionless today.
Euro (EUR) pressured by Trump’s tariff threat
The euro (EUR) stumbled on Friday after US President Donald Trump threatened to place a 50% tariff on EU goods from 1 June.
However, the single currency quickly rebounded, after Trump announced on Sunday he would delay the deadline until 9 July, following a ‘very nice’ call with European Commission President Ursula von der Leyen.
The release of the Eurozone’s latest economic sentiment index could place additional pressure on the euro this morning as May’s figures are expected to report another deterioration in morale.
US dollar (USD) slumps on Trump tax bill
The US dollar (USD) faced notable selling pressure at the end of last week as US debt concerns mounted after the passing of Trump’s sweeping tax and spending bill.
These fears persisted into the start of this week, with the ‘greenback’ proving particularly vulnerable as US markets were closed for the extended Memorial Day weekend.
Coming up, the release of the latest US durable goods orders data may trigger additional losses for the US dollar today. Economists predict Trump’s tariffs will have triggered a sharp slump in order growth in April.
Canadian dollar (CAD) subdued as oil prices slide
The Canadian dollar (CAD) was muted through the end of last week and into the start of this week amid a weakening of oil prices.
The commodity-linked currency risks coming under additional pressure today, if crude prices continue to soften.
Australian dollar (AUD) slips amid souring risk appetite
The Australian dollar (AUD) retreated overnight on Monday, as a negative shift in market risk appetite limited demand for the ‘Aussie’
New Zealand dollar (NZD) dented by risk-off flows
The New Zealand dollar (NZD) also softened in overnight trade as the cautious market mood saw it trade in parallel with its antipodean cousin.
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