Pound (GBP) drifts in subdued trade
The pound (GBP) was directionless in yesterday’s session, with recent Sterling strength fading amid a lack of fresh UK data.
This pause comes after strong gains earlier in August, as upbeat UK releases and a more hawkish tone from the Bank of England (BoE) boosted investor sentiment.
With today’s UK economic calendar remaining light, broader market dynamics are likely to steer GBP movement.
Euro (EUR) volatile ahead of Trump-Zelenskyy talks
The euro (EUR) opened Monday on the back foot, with investors cautious ahead of talks between US President Donald Trump, Ukrainie’s Volodymyr Zelenskyy, and EU leaders.
The single currency later staged a rebound, however, after Washington’s pledge to help bolster security was seen as a step forward for peace.
Lacking any major Eurozone data, trade in the euro is likely to remain linked to Ukrainian peace developments today.
US dollar (USD) edges higher in cautious trade
The US dollar (USD) ticked upward at the start of the week, supported by safe-haven demand in the lead-up to the Trump-Zelenskyy meeting.
That said, the ‘greenback’s gains remained capped by persistent expectations of further Federal Reserve interest rate cuts.
Looking to the days ahead, with the Fed’s Jackson Hole symposium approaching later this week, USD trade may remain relatively subdued today.
Canadian dollar (CAD) struggles as oil weakens
The Canadian dollar (CAD) came under pressure on Monday, as falling oil prices weighed on the commodity-linked currency.
Canada’s latest CPI figures are due later today. Should July’s report show inflation cooling further, the ‘loonie’ could slip as this adds to pressure on the Bank of Canada (BoC) to lower interest rates.
Australian dollar (AUD) slips despite upbeat sentiment data
The Australian dollar (AUD) retreated overnight on Monday, with a stronger-than-expected rise in consumer confidence failing to offset broader pressure on the ‘Aussie’.
New Zealand dollar (NZD) rangebound ahead of RBNZ decision
The New Zealand dollar (NZD) traded steadily overnight, as investors adopted a cautious stance ahead of Wednesday’s Reserve Bank of New Zealand (RBNZ) policy announcement.
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