Pound (GBP) Steady on Upbeat BoE Outlook
The Pound (GBP) held its ground at the start of this week’s session as GBP investors welcomed upbeat comments from Bank of England (BoE) Chief Economist Andy Haldane.
Speaking in the Daily Mail, Haldane said that the UK economy is on a path to a rapid recovery, suggesting that the ‘economy has been rising an average of about 1% per week’ and that risks to jobs have receded.
This help to offset concerns ahead of the next round of Brexit trade talks between the UK and EU, which resume later today, as most analysts remain pessimistic at the chances of any real progress.
Euro (EUR) Buoyed by Bundesbank Optimism
The Euro (EUR) trended higher during Monday’s trading session as Germany’s central bank struck an upbeat tone in its latest monthly report.
The Bundesbank report forecasts that growth in the Eurozone’s largest economy is set to boom through the summer as consumer spending surges with the easing of lockdown measures.
Looking ahead, EUR investors will look to commentary from the European Central Bank’s (ECB) Luis de Guindos for fresh impetus this morning.
US Dollar (USD) Struggles against the Pound in Risk-On Trade
The US Dollar (USD) found itself on the defensive yesterday as demand for the safe-haven currency was undermined by an improvement in market sentiment.
The postponement of the six-month review of the US-China phase one trade deal added to the improved market mood.
This was reportedly to provide China with more time to meet its commitment to purchase more US exports, something that analysts suggest should prevent the deal from being scrapped.
Meanwhile, the focus for USD investors today looks to be on the situation in Washington as tensions flare over claims Donald Trump is sabotaging the US postal services in order to influence the upcoming election.
Canadian Dollar (CAD) Buoyed by Uptick in Oil Prices
The Canadian Dollar (CAD) edged higher in trade on Monday, with the appeal of the commodity linked currency bolstered by a modest rise in WTI crude prices.
Australian Dollar (AUD) Dips as RBA Minutes Confirm Bank’s Dovish Bias
After soaring through Monday’s session, the Australian Dollar (AUD) began to give ground in overnight trade following the release of the minutes from the Reserve Bank of Australia’s (RBA) August policy meeting.
While the minutes offered no surprises to AUD investors, this reaffirmed the RBA’s dovish stance and its intention to maintain ultra-accommodative monetary policy for the foreseeable future.
New Zealand Dollar (NZD) Slips on Domestic Coronavirus Concerns
The New Zealand Dollar (NZD) also trended lower overnight on Monday as concerns over a resurgence of coronavirus infections in New Zealand and its potential to derail the country’s recent economic recovery buffeted the appeal of the Kiwi.