Pound Firms on BoE Rate Expectations

Pound (GBP) Supported by Hawkish BoE Expectations

The Pound (GBP) ticked higher on Monday as it continued to draw support from a series of hawkish comments from Bank of England (BoE) policymakers last week.

This upside in Sterling found additional support amid a prevailing risk-on market mood.

In the absence of any notable UK data, the Pound is likely to remain sensitive to market risk appetite today. Will an upbeat mood help to sustain Sterling’s gains?

Euro (EUR) Slides on ECB Lagarde Comments

The Euro (EUR) ticked lower at the start of this week, following comments from European Central Bank (ECB) President Christine Lagarde.

Lagarde warned that the Eurozone economy remained weak and suggested there is considerable uncertainty regarding the medium-term outlook for inflation.

Meanwhile, the Euro may attract some support this morning after Germany’s latest consumer confidence index reported a stronger-than-expected improvement in household morale going into December.

US Dollar (USD) Undermined by Risk-On Flows

The US Dollar (USD) trended broadly lower on Monday as a bullish market mood limited demand for the safe-haven currency.

Adding to the pressure on the ‘Greenback’ was a modest drop in US Treasury yields through the US trading session.

Looking ahead, the US Dollar may remain on the defensive today as the latest CB consumer confidence index is expected to report that US household morale deteriorated this month.

Canadian Dollar (CAD) Subdued as Oil Prices Weaken

The Canadian Dollar (CAD) ticked lower at the start of this week as the commodity-linked currency was undermined by a modest fall in oil prices.

In the absence of any market moving data, it’s likely movement in the ‘Loonie’ will remain tied to oil price dynamics today. Will a further decline lead CAD exchange rates to weaken?

Australian Dollar (AUD) Firms despite Disappointing Data

The Australian Dollar (AUD) trended higher overnight on Monday, with the ‘Aussie’ shrugging off some weaker-than-expected domestic retail sales data as it was underpinned by a positive market mood.

New Zealand Dollar (NZD) Muted ahead of RBNZ Decision

The New Zealand Dollar (NZD) traded sideways during today’s Asian session as NZD investors were reluctant to make any aggressive bets ahead of the Reserve Bank of New Zealand’s (RBNZ) latest interest rate decision.

Matthew Andrews

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