03/10/2025
The US Dollar continues to outperform amid cautious Fed sentiment and strong bond yields, while the Euro and Pound remain pressured by weak economic outlooks and policy divergence.
The Euro and Pound are under pressure due to weak regional data, while the Australian Dollar struggles amid rate-cut speculation. Markets will focus on upcoming US employment data and FOMC minutes.
USD struggled across the board on Monday due to improved risk sentiment, but upcoming US economic data could offer a recovery opportunity. Eurozone CPI data and Canadian political developments will also influence the markets today.
The US dollar continues to dominate across the board, supported by resilient economic data and a cautious Fed approach to rate cuts. This week’s focus will centre on inflation data from Europe and critical US labour market reports.
Geopolitical risks, particularly in France, Canada, and South Korea, remain key factors to watch as they may influence market sentiment and safe-haven flows.
Currency markets have started the holiday-shortened week with subdued trading volumes, leading to limited volatility.