Pound (GBP) Caps Losses on Robust GDP Release
After sustaining a sharp sell-off through the better part of the week, the Pound (GBP) was able to close the session on more solid footing in the wake of the UK’s latest monthly GDP release.
The Office for National Statistics (ONS) reported UK GDP expanded by 6.6% in July, indicating the economy is on track for a fairly solid rebound in growth in the third quarter.
Looking ahead, Boris Johnson’s internal market bill is set to be debated in the House of Commons later today. Johnson is facing a rebellion from Conservative backbenchers, but will it be enough to quash the controversial legislation that drove last week’s dramatic GBP sell-off?
Euro (EUR) Buoyed by Comments from ECB Members
The Euro (EUR) sought to consolidate Thursday’s gains at the end of last week’s session following remarks from several European Central Bank (ECB) policymakers.
The majority reiterated the ECB’s stance on not targeting EUR exchange rates, while also downplaying its recent gains as not ‘historically exceptional’.
Coming up, the focus for EUR investors today will be on the Eurozone’s latest industrial production figures. The single currency could weaken if factory output prints below expectations in July.
US Dollar (USD) Rangebound as US Inflation Rises
The US Dollar (USD) initially dipped during Friday’s trading session, with demand for the safe-haven currency weakening as equity markets ticked higher.
The ‘Greenback’ was able to recoup a solid portion of these gains later in the session however after US headline inflation printed higher-than-expected in August.
Turning to this week, the focus for USD investors will be on the Federal Reserve’s upcoming rate decision. No policy changes are expected, but markets will be looking for insight into how the changes to the bank’s average inflation targets could impact policy decisions going forward.
Canadian Dollar (CAD) Steady on Modest Oil Rebound
The Canadian Dollar (CAD) held its ground at the end of last week’s session, with the commodity linked ‘Loonie’ finding some limited support courtesy of a modest rebound in oil prices.
Australian Dollar (AUD) Sidelined by US-China tensions
After enjoying some modest gains at the end of last week, the Australian Dollar (AUD) has been sidelined today, with US-China tensions limiting the appeal of the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Strengthens as ‘Kiwi’ Remains ‘Attractive’
The New Zealand Dollar (NZD) ticked higher in early trade this week, spurred on its way by the NZ Institute of Economic Research (NZIER) suggesting that the ‘Kiwi’ remains ‘attractive’ in light of the Reserve Bank of New Zealand’s (RBNZ) reasonably sanguine outlook.