Pound (GBP) remains buoyed by falling gilt yields
The pound (GBP) outperformed most of its peers at the end of last week, with the currency striking its best levels since mid-September.
The upside in GBP was supported by a further fall in UK government borrowing costs following Chancellor John Healey's budget on Wednesday.
UK economic data is in short supply at the start of this week, which, coupled with caution ahead of the Bank of England's (BoE) rate decision on Thursday, may temper Sterling sentiment today.
Euro (EUR) slips despite robust Eurozone GDP figures
The euro (EUR) retreated on Friday, with the single currency being undermined by its negative correlation with the US dollar (USD) in addition to fresh French fiscal jitters.
This offset the publication of the Eurozone's latest GDP data, which reported growth in the third quarter was more resilient than initially feared.
The publication of Germany's latest retail sales figures may place more pressure on the single currency today, as consumer spending was shown to have contracted sharply in September.
US dollar (USD) gains capped by election uncertainty
The US dollar firmed at the end of last week, with the safe-haven currency being carried higher by a prevailing risk-off mood.
However, the currency's gains remained fairly modest, as USD sentiment was simultaneously suppressed by US mid-term jitters.
The run-up to the mid-term elections could infuse fresh volatility into the US dollar in the coming days as political uncertainty rises.
Canadian dollar (CAD) strengthened by rising oil prices
The Canadian dollar (CAD) appreciated on Friday as a roughly 2.5% jump in global oil prices allowed the 'loonie' to offset weaker-than-expected domestic GDP figures.
With crude dropping sharply at the start of this week, CAD has come under pressure. Expect the currency to weaken further if oil prices continue to retreat.
Australian dollar (AUD) subdued ahead of RBA rate decision
The Australian dollar (AUD) was muted through Monday's Asian trading session, as AUD investors erred on the side of caution ahead of the Reserve Bank of Australia's (RBA) interest rate decision on Tuesday.
New Zealand dollar (NZD) dented by political uncertainty
The New Zealand dollar (NZD) also struggled in overnight trade, weighed down by political uncertainty ahead of New Zealand's general election later in the week.
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