Pound (GBP) supported by BoE Ramsden’s inflation warning
The pound (GBP) traded higher on Monday after Bank of England (BoE) Deputy Governor Dave Ramsden suggested UK inflation may continue rising for a while yet.
That said, Sterling’s gains were tempered as the Labour party conference began, with markets wary of the prospect of a policy shift toward greater government spending.
Looking ahead, a small upward revision to annual UK GDP has so far done little to shift GBP sentiment, with investors instead eyeing remarks from BoE officials later today.
Euro (EUR) boosted by softer US dollar
The euro (EUR) advanced at the start of the week, with the currency finding support as the US dollar (USD) lost ground.
A stronger-than-expected reading in the Eurozone’s economic sentiment index offered additional tailwinds.
Later today, Germany’s CPI release could lend the euro further momentum, if the anticipated uptick in inflation reinforces expectations that the European Central Bank (ECB) will hold off on more rate cuts.
US dollar (USD) pressured by shutdown concerns
The US dollar fell on Monday amid mounting fears that the US government could shut down by Tuesday evening.
Caution was also evident ahead of a raft of upcoming US labour data, which risks being delayed should the shutdown go ahead.
The latest JOLTs job openings figures will be closely watched later today, with forecasts of a decline in vacancies adding further downside pressure on the dollar.
Canadian dollar (CAD) dips as crude weakens
The Canadian dollar (CAD) edged lower at the start of the week, mirroring the drop in global oil benchmarks.
Should oil markets remain under pressure today, the ‘loonie’ may extend these losses through the session.
Australian dollar (AUD) climbs on hawkish RBA rate decision
The Australian dollar (AUD) gained sharply overnight as the Reserve Bank of Australia (RBA) delivered its latest policy verdict. While rates were left unchanged, the central bank struck a hawkish tone, cautioning that inflation in Q3 is likely to exceed forecasts.
New Zealand dollar (NZD) strengthens on risk appetite
The New Zealand dollar (NZD) also ticked higher on Monday evening, with the improvement in global risk sentiment helping to counteract soft domestic business confidence data.
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