Pound (GBP) buoyed despite mixed BoE comments
The pound (GBP) strengthened against is weaker rivals yesterday, despite some mixed comments from Bank of England (BoE) Deputy Governor Ben Broadbent.
While Broadbent said that an interest rate cut in the summer was ‘possible’, he also signalled that policymakers were wary of cutting rates too soon.
Movement in the pound may be limited today ahead of tomorrow’s UK consumer price index. However, this evening a speech from BoE Governor Andrew Bailey could undermine GBP, if Bailey strikes a dovish tone.
Euro (EUR) stumbles in absence of data
The euro (EUR) softened yesterday as a lack of Eurozone data left the single currency struggling to attract support.
In addition, comments from European Central Bank (ECB) policymaker Martins Kazaks pressured EUR as he backed a June rate cut. However, he also warned against loosening policy too quickly in the following months.
This morning, Germany’s latest producer price inflation figures revealed a larger-than-expected cooldown last month. This seems to be pressuring EUR today.
US dollar (USD) firms following Fed remarks
The US dollar (USD) inched higher yesterday following comments from multiple Federal Reserve officials.
Although the policymakers varied in tone, overall they sounded like they were in no hurry to rush into cutting interest rates, which lent USD support.
Another flurry of Fed speeches could drive movement in the US dollar today. Could a similarly hawkish tilt to their remarks see the US dollar strengthen?
Canadian dollar (CAD) wavers lower alongside oil
The Canadian dollar (CAD) traded true to its positive correlation with oil yesterday, as CAD fluctuated lower in tandem with oil prices.
Today, Canada’s latest inflation rate is the focus for CAD investors. Could a cooling of inflation last month see the ‘loonie’ stumble?
Australian dollar (AUD) slides despite RBA minutes
The Australian dollar (AUD) fell last night, despite the Reserve Bank of Australia’s (RBA) latest meeting minutes revealing that the bank considered hiking rates earlier this month. A risk-off mood weighed on the ‘Aussie’.
New Zealand dollar (NZD) declines as market mood sours
The New Zealand dollar (NZD) also weakened overnight, with the cautious mood and NZD’s positive relationship with AUD both weighing on the ‘kiwi’.