Euro Hits Multi-Month Low as German Factory Orders Plunge
The British pound (GBP) experienced a mixed start to the week as investors took profits, leading to a partial retreat from gains made in the previous session. However, the pound found some support from an upward revision to September’s services PMI, which helped limit the decline. With little significant UK economic data due, Sterling may continue to trade within a narrow range.
The euro (EUR) sank to fresh multi-month lows on Monday, driven by escalating concerns over France’s substantial debt burden. Political tensions in France have intensified, with the government facing strong opposition to its proposed budget aimed at reducing spending and the deficit. Additional pressure on the euro emerged after Germany’s latest industrial data revealed a sharp decline in factory orders during August.
The US dollar (USD) saw widespread demand as a more risk-averse market environment boosted its appeal as a safe-haven currency. However, the dollar later surrendered some gains after the US services PMI for September came in below expectations. The dollar could continue its upward trend if cautious sentiment persists.
The Canadian dollar (CAD) edged higher on Monday, supported by a rally in global oil prices. The ‘loonie’ may extend its gains if Brent crude prices maintain their upward momentum. Meanwhile, the Australian dollar (AUD) traded with volatility as weaker consumer confidence weighed on the currency. The New Zealand dollar (NZD) also experienced a choppy session due to shifting levels of market risk appetite.