Pound (GBP) wobbles on lukewarm BoE remarks
The Pound (GBP) wavered at the end of last week’s session following mixed comments from Bank of England (BoE) policymaker Jonathan Haskel.
Haskel defended voting for an interest rate hike at the BoE’s January meeting, arguing that inflation remains persistently high. However, he revealed that his decision had been ‘finely balanced’, which stifled the Pound’s potential.
A speech from BoE Governor Andrew Bailey could impact the Pound this evening. However, GBP traders may refrain from placing aggressive bets ahead of high-impact data due later in the week, which is set to spark significant volatility.
Euro (EUR) muted amid cooling German inflation
The Euro (EUR) was subdued on Friday following Germany’s final consumer price index for January.
The CPI confirmed that inflation in Germany eased to its lowest level since June 2021 last month, stoking speculation around when the European Central Bank (ECB) will start cutting interest rates.
Eurozone data is thin on the ground today, so we may see the single currency subdued once again.
US Dollar (USD) stumbles as inflation revised lower
The US Dollar (USD) weakened on Friday after recent US inflation data was revised slightly lower.
American inflation was weaker than initially thought in December, leading to a modest increase in Federal Reserve rate cut bets and thereby denting USD.
This afternoon, Fed policymaker Michelle Bowman is due to deliver a speech. If she strikes a hawkish tone, USD could climb.
Canadian Dollar (CAD) rocked by mixed jobs data
The Canadian Dollar (CAD) faced volatility on Friday, trending lower overall, following a mixed jobs report and choppy oil prices.
Turning to today, a lack of Canadian data may see crude prices drive the commodity-linked ‘Loonie’.
Australian Dollar (AUD) flat amid thin trading conditions
The Australian Dollar (AUD) traded in a narrow range last night amid a lack of data and a mixed market mood.
New Zealand Dollar (NZD) stumbles due to profit-taking
The New Zealand Dollar (NZD) slipped last night, with the ‘Kiwi’ relinquishing some of last week’s gains as investors sought to cash in on NZD.