US dollar plummets to three-year low amid mounting confidence crisis

Pound (GBP) buoyed by upbeat GDP figures

The pound (GBP) trended broadly higher at the end of last week after the UK’s latest GDP figures reported the economy expanded by 0.5% in February.

However, analysts warned that February’s data doesn’t accurately reflect the economic realities of global trade under Trump, capping Sterling’s gains.

The UK will publish its latest jobs data in the first half of this week. Could signs of a strong UK labour market temper Bank of England (BoE) interest rate cut speculation and lift the pound?

Euro (EUR) jumps amid USD selloff

The euro (EUR) accelerated on Friday as it was pushed higher by its strong negative correlation with the US dollar (USD).

Amid the US dollar’s growing challenges, investors looked to other safe-haven assets like the single currency to ride out the current market volatility.

Assuming the USD selling bias remains in place, expect the euro to stay in vogue at the start of this week.

US dollar (USD) punished by US policy concerns

The US dollar tumbled to a three-year low at the end of last week as sentiment in the dollar continued to evaporate.

In addition to recent tariff uncertainty, concern over Federal Reserve independence further fuelled a mounting confidence crisis in USD, following reports that President Donald Trump petitioned the Supreme Court to grant him the authority to fire Fed Chair Jerome Powell.

The US dollar will likely remain at the mercy of Trump at the start of this week, with USD exchange rates already facing fresh volatility after he contradicted reports of a smartphone and electronic tariff exemption.

Canadian dollar (CAD) pressured by softer oil prices

The Canadian dollar (CAD) slipped on Friday, with the commodity-linked currency falling in tandem with global oil prices.

In the absence of any notable domestic data today, the ‘loonie’ may continue to track movements in oil prices.

Australian dollar (AUD) muted as Chinese imports continue to fall

The Australian dollar (AUD) traded sideways through Monday’s Asian trading session, as AUD investors expressed concern over another larger-than-expected fall in Chinese imports.

New Zealand dollar (NZD) subdued amid global uncertainty

The New Zealand dollar (NZD) also struggled to find any meaningful gains in overnight trade amid ongoing global trade uncertainty.

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