Pound (GBP) firms as UK unveils new industrial strategy
The pound (GBP) advanced on Monday amid a broadly positive response to the UK’s new industrial strategy.
Hopes that measures such as reduced energy costs and expanded training initiatives could boost growth in key industries helped to lift Sterling.
Attention will turn to a speech from Bank of England (BoE) Governor Andrew Bailey today. If Bailey pushes back against expectations for an August rate cut, the pound could build on its recent gains.
Euro (EUR) slips as Eurozone PMIs underwhelm
The euro (EUR) softened at the start of the week after the Eurozone’s latest PMI reports fell short of forecasts.
The data revealed the bloc’s private sector is still struggling, with growth teetering just above the contraction threshold.
Today sees the release of Germany’s IFO business climate survey. Signs of improving business confidence could help the euro recoup some of its losses.
US dollar (USD) mixed amid geopolitical developments
The US dollar (USD) began the week supported by safe-haven flows as tensions escalated in the Middle East, following US strikes on Iranian nuclear sites over the weekend.
However, optimism over a possible diplomatic resolution to the crisis saw these gains reversed later in the day.
After opening today’s session on the back foot following news of an Israel-Iran ceasefire, the greenback may rebound if Federal Reserve Chair Jerome Powell strikes a hawkish tone during his testimony to Congress this afternoon.
Canadian dollar (CAD) unsettled by oil market swings
The Canadian dollar (CAD) began the week on an uneven note, as fluctuating oil prices injected volatility into the commodity-linked currency.
Looking ahead, Canada’s latest inflation figures are due today. A weaker reading could weigh on the ‘loonie’ by fuelling Bank of Canada (BoC) rate cut speculation.
Australian dollar (AUD) soars on Middle East peace hopes
The Australian dollar (AUD) surged in overnight trade after US President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran lifted global risk appetite.
New Zealand dollar (NZD) lifted by improved sentiment
The New Zealand dollar (NZD) also gained on Monday night as easing geopolitical tensions encouraged investors to seek out riskier assets.
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