Pound (GBP) Retains Strength Ahead of BoE Rate Decision
The Pound (GBP) remained well supported at the start of this week as GBP investors braced for the Bank of England’s (BoE) latest interest rate decision.
The GBP/EUR exchange rate struck a fresh nine-month high as talk of a possible 50bps rate hike from the BoE got a little louder.
In the absence of any notable UK economic data, the focus for GBP investors is likely to remain on the BoE’s upcoming rate decision, likely continuing to underpin Sterling.
Euro (EUR) Subdued amid Sparse Data Calendar
The Euro (EUR) was trapped in a narrow range through Monday’s trading session amid a lull in notable EUR data.
The subdued movement in the single currency came despite European Central Bank (ECB) policymaker Peter Kazimir suggesting another rate hike in July is very likely.
Today’s session opened with the publication of Germany’s latest PPI figures. A sharp decline in producer prices is likely to soften inflation expectations and could leave the Euro on the defensive today.
US Dollar (USD) Buoyed by Cautious Trade
The US Dollar (USD) ticked higher yesterday as concerns over China’s economic outlook weighed on market sentiment and strengthened safe-haven demand.
However, USD’s upside potential remained capped in the face of thin trading conditions in the US Dollar as US markets closed for the Juneteenth Federal holiday.
Speeches by the Federal Reserve’s Jim Bullard and John Williams will likely act as the main catalyst of movement in the ‘Greenback’ today. Could a broadly hawkish consensus bolster USD exchange rates?
Canadian Dollar (CAD) Firms despite Oil Price Slide
The Canadian Dollar (CAD) traded with modest gains on Monday, with the commodity-linked ‘Loonie’ shrugging off a small decline in oil prices.
Australian Dollar (AUD) Sinks following RBA Minutes
The Australian Dollar (AUD) slumped in overnight trade, with AUD bulls seemingly unimpressed by the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting.
New Zealand Dollar (NZD) Weakens in Cautious Trade
The New Zealand Dollar (NZD) also softened overnight as the People’s Bank of China (PBoC) cuts to its benchmark loan prime rates, highlighted the economic headwinds facing one of New Zealand’s key trading partners.