Threats of trade war and mixed messages from Trump administration prompt US dollar weakness

Last week saw the pound appreciate against the majority of its peers, particularly the US dollar which sank at an alarming rate.

The pound opened this week on the back foot, with GBP/EUR tumbling to €1.1237 and GBP/USD sliding 0.3% to US$1.4108.

Sterling may struggle to repeat last week’s performance however as a resurgent USD and a quieter week of data is unlikely to prompt any major upswings.

Pound bolstered by domestic data

The pound put in a strong performance last week as a lack of political upsets or Brexit developments led investors to focus on a slew of upbeat economic data from the UK.

Euro jumps in wake of ECB meeting

The euro appreciated against the majority of its peers last week as the single currency was propelled higher due to a combination of USD weakness and optimism from the European Central Bank (ECB).

USD falls as Treasury official calls for weaker dollar

The US dollar’s run of losses in 2018 currently remains unbroken with USD tumbling again last week over conflicting messages on government support for a strong currency.

AUD lifted by USD weakness, NZD suffers as inflation prints lower than expected

Trade in both the Australian dollar and New Zealand dollar was volatile last week as the weakness in USD prompted significant movement in the commodity-correlated currencies.