Pound (GBP) Climbs following BoE Testimony
The Pound (GBP) strengthened yesterday amid hawkish commentary from some Bank of England (BoE) policymakers as they testified to the Treasury committee.
BoE Governor Andrew Bailey said that markets were ‘underestimating’ the potential persistence of inflation, while policymaker Catherine Mann signalled her support for more interest rate hikes.
Today, Chancellor Jeremy Hunt’s Autumn Statement is in the spotlight. Could pro-growth tax and spending plans see Sterling climb?
Euro (EUR) Falls amid ECB Rate Cut Speculation
The Euro (EUR) faced selling pressure yesterday, following dovish comments from European Central Bank (ECB) policymakers on Monday night.
Rate-setter Francois Villeroy de Galhau said that interest rates would remain unchanged for the next few quarters, indicating possible rate cuts in the summer. His colleague Pierre Wunsch was less dovish, although he indicated that more hikes were unlikely.
Looking ahead, Eurozone consumer confidence is due out this afternoon. If household morale in the bloc remains low, EUR could struggle to attract support.
US Dollar (USD) Weak as Fed Bets Fall
The US Dollar (USD) remained on the defensive yesterday, as investors continue to reprice the currency following the cooler US inflation figures last week.
Markets are increasingly certain that the Federal Reserve has concluded its rate hiking cycle. Now investors are betting on when the Fed will unwind its policy tightening.
Turning to today, markets expect to see a sharp decline in US durable goods orders as well as a drop in jobless claims. Could these mixed data releases drive volatility?
Canadian Dollar (CAD) Rises despite Easing Inflation
The Canadian Dollar (CAD) firmed during yesterday’s session, despite flat oil prices and cooling Canadian headline inflation. Signs of sticky core inflation may have boosted CAD.
Later this afternoon, Bank of Canada (BoC) Governor Tiff Macklem is due to speak. Any hints around monetary policy could impact the ‘Loonie’.
Australian Dollar (AUD) Slips as Sentiment Sours
The Australian Dollar (AUD) fell overnight as a souring market mood dented the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Weakens amid Risk-Off Trade
The New Zealand Dollar (NZD) also stumbled last night, with cautious investors shunning the riskier ‘Kiwi’.