Pound (GBP) subdued following dovish BoE comments
The pound (GBP) remained on the back foot at the close of last week, after Bank of England (BoE) policymaker Alan Taylor struck a dovish tone.
In an interview with the Financial Times, Taylor downplayed the latest inflation jump and signalled his support for stepping up the pace of interest rate cuts.
Looking ahead, Sterling may face further selling pressure with the release of the UK’s final manufacturing PMI, which is expected to confirm a steep contraction in May’s factory activity.
Euro (EUR) dips as US dollar bounces back
The euro (EUR) firmed through the early part of Friday’s session, buoyed by stronger-than-forecast German inflation figures.
However, gains in the euro were later reversed as its inverse relationship with the recovering US dollar (USD) dragged the single currency lower.
Attention now turns to the Eurozone’s own manufacturing PMI. If May’s data shows improving factory output, the euro could regain some momentum.
US dollar (USD) advances on China trade tensions
The US dollar stumbled initially on Friday, following confirmation of a decline in the Fed’s preferred inflation gauge – the core PCE price index.
That said, the greenback rebounded sharply after US President Donald Trump accused China of breaching the recent tariff truce, sparking fresh trade concerns.
All eyes are now on the latest ISM manufacturing PMI. A weaker-than-expected result could place fresh pressure on the US dollar this afternoon.
Canadian dollar (CAD) climbs on strong GDP reading
The Canadian dollar (CAD) closed out last week in positive territory, bolstered by better-than-expected GDP figures for the first quarter.
However, further upside may prove difficult if oil prices remain under pressure in the days ahead.
Australian dollar (AUD) lifts as US dollar retreats
The Australian dollar (AUD) pushed higher in overnight trade, finding support as renewed pressure on the US dollar following Trump’s new steel and aluminium tariffs, helped boost risk-sensitive currencies like the ‘Aussie’.
New Zealand dollar (NZD) rises on upbeat sentiment
The New Zealand dollar (NZD) also advanced during the Asian session, supported by improved risk appetite amid the USD weakness.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.