Pound (GBP) muted amid lack of data
The pound (GBP) was mostly rangebound as last week’s session came to a close.
Amid the continued absence of any notable UK economic releases, Sterling was left to trade without any strong directional bias.
Looking ahead, the UK’s latest manufacturing PMI may lend support to the pound today, as August’s finalised figures are expected to confirm factory sector growth soared to a two-year high.
Euro (EUR) wavers as Eurozone inflation cools
The euro (EUR) was subdued on Friday, following the publication of the Eurozone’s latest consumer price index.
August’s preliminary CPI figures reported inflation in the bloc cooled from 2.6% to a three-year low of 2.2%. EUR exchange rates subsequently fell as the CPI print cemented bets for an interest rate cut from the European Central Bank this month.
Coming up, the euro may remain on the defensive this morning if the Eurozone’s own manufacturing PMI confirms factory sector activity in the bloc sank to an eight-month low in August.
US dollar (USD) firms despite inflation miss
The US dollar closed last week’s session on the front foot, despite the Federal Reserve’s preferred indicator for inflation, the US core PCE price index, printing below expectations.
This upside in the ‘greenback’ was supported by a rise in US personal spending, which eased US recession fears and tempered bets for a larger 50bps interest rate cut from the Fed this month
Looking ahead, with US markets closed for Labor Day, thin trading conditions in the US dollar may leave the currency listless at the start of this week.
Canadian dollar (CAD) supported by GDP figures
The Canadian dollar (CAD) ticked higher on Friday, underpinned by Canada’s latest GDP figures as they reported domestic growth in the second quarter accelerated to its highest levels since the start of 2023.
Canadian markets are also closed today, likely leaving the currency vulnerable to wider market trends.
Australian dollar (AUD) firms on upbeat Chinese PMI
The Australian dollar (AUD) trended higher at the start of this week’s session. The upswing in the ‘Aussie’ followed the latest Chinese manufacturing PMI, which showed China’s factory sector returned to growth last month.
New Zealand dollar (NZD) falters in cautious trade
The New Zealand dollar (NZD) stumbled in overnight trade, pressured by a pessimistic market mood.