Yesterday was a rough day for the pound as it became increasingly clear that the Prime Minister, Theresa May, was living on borrowed time. Following the almost universal rejection of her ‘new’ EU withdrawal deal, pressure mounted on her to resign.
Fresh signs of a slowdown in China gave investors further incentive to sell out of higher-risk assets last week, with the global growth outlook appearing distinctly lacklustre.
The mood towards the Australian dollar was further soured by February’s mixed employment data, which showed that fewer Australians are now active within the labour market.
New Zealand’s fourth quarter gross domestic product fell short of expectations, meanwhile, with growth easing on the year.
This further eroded confidence in the outlook of the New Zealand economy, giving investors fresh incentive to sell out of the New Zealand dollar.
Any signs of increased dovishness at the Reserve Bank of New Zealand’s (RBNZ) March policy meeting could see NZD exchange rates extend their losses further on Wednesday.
The Australian dollar, meanwhile, may struggle to find support over the course of the week thanks to a sparse data calendar.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)