US dollar firms amid cautious market mood
Philip McHugh March 24th 2025 - 2 minute read
Pound (GBP) undermined by UK borrowing figures
The pound (GBP) was subdued at the end of last week after data showed UK public sector borrowing was higher than forecast in February.
Analysts see the latest rise as placing more pressure on UK Chancellor Rachel Reeves to cut spending or even raise taxes in her Spring Statement later in the week.
The UK will publish its latest PMI figures today. March’s data is expected to report a modest acceleration of growth in the services sector. Will this be enough to revive Sterling sentiment?
Euro (EUR) sidelined by USD strength
The euro (EUR) traded sideways on Friday as it continued to be pressured by its negative correlation with the US dollar (USD).
This offset the optimism surrounding Germany’s ambitious new spending plans, after passing through the country’s upper house of parliament.
Turning to today’s session, the euro looks poised to fall if the Eurozone’s own PMI data reports private sector growth stalled this month.
US dollar (USD) bolstered by market risk aversion
The US dollar closed last week’s session on a positive note as the cautious market mood saw investors favour the safe-haven currency.
Capping these gains, however, were lingering fears that President Donald Trump’s trade policies could tip the US into a recession.
Coming up, while not as influential as the ISM releases, the latest US S&P PMIs could stoke recession fears and apply notable pressure on the ‘greenback’ if they report private sector growth continued to cool this month.
Canadian dollar (CAD) subdued as retail sales slump
The Canadian dollar (CAD) was muted on Friday, after Canada’s latest retail sales figures reported a larger-than-expected contraction in sales growth at the start of the year.
Canadian data is in short supply at the start of this week, likely leaving movement in the ‘loonie’ to be driven by oil price dynamics.
Australian dollar (AUD) buoyed by stronger-than-expected PMIs
The Australian dollar (AUD) strengthened in overnight trade, with the currency being underpinned by stronger-than-expected domestic PMIs. AUD investors were particularly impressed by the jump in manufacturing sector growth.
New Zealand dollar (NZD) fluctuates amid mixed market mood
The New Zealand dollar (NZD) traded in a wide range overnight as an uncertain market mood infused volatility into the risk-sensitive currency.
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Written by
Philip McHugh