Pound (GBP) Muted Ahead of BoE Decision
The Pound (GBP) was subdued yesterday, slipping against its stronger peers, as GBP investors braced for the Bank of England (BoE) decision later in the week.
Last week’s gloomy economic news continued to weigh on Sterling, although a lack of fresh data limited movement.
Turning to today, the Pound may find itself trading listlessly once more as investors look ahead to tomorrow’s UK consumer price index.
Euro (EUR) Wavers amid Mixed ECB Comments
The Euro (EUR) fluctuated during yesterday’s session, moving without a clear direction, amid mixed comments from European Central Bank (ECB) officials following last week’s dovish hike.
Later in the session, a drop in the US Dollar (USD) lifted the single currency, due to EUR’s negative correlation with USD.
Coming up, the Eurozone’s final consumer price index for August is out today. Confirmation of cooling inflation could weigh on EUR.
US Dollar (USD) Choppy as Investors Await Fed Decision
The US Dollar also initially faced choppy trade yesterday as the market mood shifted ahead of the Federal Reserve’s rate decision on Wednesday.
USD then faced modest losses at the very end of the session as an improving market mood dented the safe-haven currency.
American economic data remains in short supply today, which could leave risk appetite to continue to drive USD movement. Could an improving mood see the US Dollar stumble?
Canadian Dollar (CAD) Firms as Oil Stays Strong
The Canadian Dollar (CAD) ticked higher yesterday as the recent rise in oil prices continued to provide support to the commodity-linked ‘Loonie’.
Looking ahead, Canada’s latest CPI is the focus. Could an uptick in inflation lift CAD by boosting Bank of Canada (BoC) interest rate hike bets?
Australian Dollar (AUD) Rangebound following RBA Minutes
The Australian Dollar (AUD) traded sideways last night after the minutes from the Reserve Bank of Australia’s (RBA) latest meeting provided no new information about monetary policy expectations.
New Zealand Dollar (NZD) Firms without Clear Catalyst
The New Zealand Dollar (NZD) managed to waver higher during the overnight session, despite a tepid market mood and a lack of New Zealand economic data.