Pound (GBP) buoyed by BoE rate hold
The pound (GBP) enjoyed some support yesterday after the Bank of England (BoE) voted overwhelmingly not to cut interest rates at its September policy meeting.
However, as this was in line with market expectations, Sterling was unable to rise against its stronger rivals.
This morning, GBP is garnering support after the UK’s latest retail sales figures beat expectations. Sales grew by 1% in August, above forecasts of 0.4% and accelerating from the previous month’s upwardly revised 0.7%.
Euro (EUR) cushioned by hawkish ECB comments
The safer euro (EUR) faced pressure yesterday amid a thoroughly risk-on market mood.
However, some hawkish comments from influential European Central Bank (ECB) policymaker Isabel Schnabel limited EUR’s losses, although they weren’t enough to provide the euro with a boost.
This afternoon, ECB President Christine Lagarde is due to speak. Could dovish comments from the ECB chief see EUR end the week on a sour note?
US dollar (USD) struggles following Fed decision
The US dollar (USD) initially weakened yesterday as markets continued to digest the Federal Reserve’s bumper 50bps interest rate cut announced on Wednesday evening.
USD was eventually able to claw back some losses, thanks to a decline in US initial jobless claims last week. However, the ‘greenback’ was down on the day overall.
Market-moving US data is absent from the calendar today. As a result, risk appetite could drive most movement in the safe-haven US dollar. Will a cheery mood drain USD’s appeal?
Canadian dollar (CAD) flat despite rising oil prices
The crude-linked Canadian dollar (CAD) was rangebound against most of its rivals yesterday. While rising oil prices supported CAD, the currency’s positive correlation with USD offset the upside.
Turning to today, an expected 0.6% rebound in Canadian retail sales could boost the ‘loonie’ later this afternoon.
Australian dollar (AUD) uncertain in absence of data
The Australian dollar (AUD) wavered overnight as a lack of Australian economic data left the currency without a clear direction.
New Zealand dollar (NZD) mixed amid data lull
Likewise, the New Zealand dollar (NZD) also moved without a clear trajectory amid an absence of domestic data.