Pound (GBP) languishes as political uncertainty continues
The pound (GBP) remained subdued on Friday, with Sterling licking its wounds after a bruising week for the UK currency.
Political uncertainty continued to weigh on GBP exchange rates, amid signs that Greater Manchester Mayor Andy Burnham could return to parliament to challenge Prime Minister Keir Starmer.
Speeches from two Bank of England (BoE) policymakers could impact GBP today. While hints at coming interest rate hikes could support the pound, Sterling may struggle if the BoE officials sound alarmed about the UK’s current fiscal and economic outlook.
Euro (EUR) unsure in absence of data
The euro (EUR) was mixed on Friday as a lack of Eurozone data left the single currency rudderless.
While the safer euro held its ground against riskier rivals, EUR struggled against its stronger peers.
Eurozone economic data is in short supply at the start of this week’s session, potentially leaving EUR without a clear directional bias once again.
US dollar (USD) consolidates gains after strong week
The US dollar (USD) extended its winning streak on Friday, as ongoing risk aversion underpinned the safe-haven ’greenback’.
Interest rate expectations also supported the American currency, with markets increasingly betting on a Federal Reserve rate hike to tame rising inflation.
Risk appetite could drive USD movement today, with the ‘greenback’ poised to strengthen if a gloomy mood prevails.
Canadian dollar (CAD) buoyed by strong oil prices
The crude-linked Canadian dollar (CAD) held strong at the end of last week thanks to elevated oil prices.
Oil price movements remain the focus for CAD investors today. Could ongoing strength in crude see the Canadian dollar climb?
Australian dollar (AUD) wobbles as risk appetite remains subdued
The Australian dollar (AUD) dipped at the start of this week’s session amid a risk-off mood, although it has managed to recoup these losses.
New Zealand dollar (NZD) wavers following mixed PMI
The New Zealand dollar (NZD) has also had a choppy start to the week, with New Zealand’s latest services PMI beating forecasts but still showing a contraction in activity in April.
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