Pound (GBP) supported as Gatwick expansion approved
Easing UK fiscal jitters helped the pound (GBP) to strengthen yesterday, clawing back some of the ground lost at the end of last week.
Sterling sentiment was buoyed by Chancellor Rachel Reeves, who pledged to deliver the government’s growth agenda after granting approval for a second runway at Gatwick airport.
Attention today turns to the UK’s PMI data. Should September’s services survey show a slowdown, it could weigh on the pound.
Euro (EUR) lifted by improving consumer confidenc
The euro (EUR) advanced on Monday, with support coming from stronger-than-expected Eurozone consumer sentiment.
The index climbed from –15.5 to –14.9 in September, topping forecasts but still far from long-term norms.
The Eurozone’s flash PMIs for September will be published today. Signs of improved private sector growth could provide the single currency with fresh momentum.
US dollar (USD) drifts lower ahead of Fed remarks
The US dollar (USD) weakened at the start of the week as markets awaited a series of speeches from Federal Reserve officials.
Focus was on newly appointed policymaker Stephen Miran, who cast the sole vote in favour of a steeper 50bps cut last week and suggested in his first public comments on Monday that be believes US interest rates at 200bps too high.
All eyes today will be on Fed Chair Jerome Powell’s address, with USD traders eager for clues on the central bank’s policy outlook.
Canadian dollar (CAD) retreats after PPI shock
The Canadian dollar (CAD) slipped on Monday after producer price data unexpectedly fell, fuelling expectations for additional Bank of Canada (BoC) easing.
With no major Canadian data due, CAD movement will likely mirror oil price trends. Continued weakness in crude could drag the ‘loonie’ lower.
Australian dollar (AUD) knocked by PMI decline
The Australian dollar (AUD) fell overnight after September’s PMIs revealed a sharp slowdown in domestic private sector activity.
New Zealand dollar (NZD) edges lower on cautious trade
The New Zealand dollar (NZD) also lost ground in overnight trade as subdued market sentiment curbed demand for the ‘kiwi’.
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