GBP softens as markets scratches head over....>

FOREX: GBP softens as markets scratches head over budget

- After a decent finish to last week's trade, GBP was the poorest performer

Monday, although market volumes and newsflow remained thin as US participants

celebrated Presidents' Day. A government spokesperson again refused to confirm

the date of the first budget under new Chancellor Rishi Sunak, leading traders

to take some profits off the table and take the shine off the currency.

- JPY sat slightly weaker as markets responded to particularly poor GDP figures

and a modest recovery in equity markets. European stocks finished with

broad-based gains, with peripheral Italian and Spanish equities slightly

outperforming.

- ZAR sharply underperformed, falling against both DM and EM currencies as

Moody's dropped their GDP forecasts for the country, which doesn't bode well

ahead of the budget next week.

- Tuesday sees the return of US markets from their public holiday Monday, with

attention turning to UK jobs data and German ZEW survey. US Empire manufacturing

data is also due. RBA minutes and a speech from ECB's Panetta are also due.