Pound (GBP) buoyed by rebound in UK GDP
The pound (GBP) edged higher at the end of last week, as GBP investors welcomed the release of the UK’s latest GDP figures.
These showed that the UK economy expanded in August for the first time since May, relieving fears that the stellar growth seen at the start of the year had completely evaporated.
Coming up, Bank of England (BoE) official Swati Dhingra will speak later this morning. As one of the more dovish members of the BoE’s Monetary Policy Committee her comments could act as a headwind for the pound today.
Euro (EUR) subdued amid Eurozone recession fears
The euro (EUR) found itself on the defensive on Friday amid growing uncertainty over the trajectory of the Eurozone economy.
EUR investors are increasingly concerned that the bloc is on the edge of a recession amid a widespread slump in consumer activity.
Turning to this week, the euro may trade sideways through the start of the session as EUR investors brace for the European Central Bank’s (ECB) latest interest rate decision.
US dollar (USD) dented by fall in consumer sentiment
The US dollar (USD) closed last week’s session on a sour note, following an unexpected deterioration in the University of Michigan’s latest US consumer sentiment index.
USD demand was also dented by US producer price index figures, which beat forecasts but still reported producer price growth continued to cool last month.
Looking ahead, USD investors are likely to look to speeches by Federal Reserve policymakers Christopher Waller and Neel Kashkari for fresh impetus today. If they signal they expect the bank to cut interest rates again next month, the US dollar is likely to weaken.
Canadian dollar (CAD) muted despite upbeat jobs data
The Canadian dollar (CAD) was left to trade in a narrow range on Friday, with the ‘loonie’ struggling to attract support despite Canada’s latest job data reporting a surprise fall in unemployment last month.
Looking ahead, CAD exchange rates may struggle at the start of this week if global oil prices continue to fall.
Australian dollar (AUD) slides on weak Chinese CPI reading
The Australian dollar (AUD) came under pressure in overnight trade in response to weak inflation figures from China, with AUD investors fearing the knock-on impact this may have on Australia’s economy.
New Zealand dollar (NZD) softens in cautious trade
The New Zealand dollar (NZD) also weakened overnight as underwhelming inflation figures from China undermined market risk appetite.