Pound (GBP) lifted by hawkish Pill remarks
The pound (GBP) moved modestly higher at the close of last week after comments from Bank of England (BoE) Chief Economist Huw Pill offered support.
Pill argued that the BoE’s job in bringing inflation under control is not yet complete, stressing that monetary policy must stay restrictive to ensure price pressures ease sustainably.
At the start of this week, Sterling may trade within a tight range as GBP investors refrain from making major moves ahead of key UK data releases due later in the week.
Euro (EUR) steady as GDP meets forecasts
The euro (EUR) traded sideways on Friday after the Eurozone’s latest GDP figures matched market expectations.
Figures released at the end of last week confirmed the bloc’s economy grew by 0.3% in the fourth quarter of 2025, maintaining the same pace recorded in Q3.
Looking ahead, the euro could face headwinds if the Eurozone’s upcoming industrial production data shows factory output slowed in December, as anticipated.
US dollar (USD) trimmed by cooler inflation
The US dollar (USD) faltered at the end of last week as softer US inflation data erased earlier gains.
Annual price growth slowed more sharply than forecast in January, prompting some investors to scale back their more hawkish Federal Reserve rate expectations.
Although US data is limited at the beginning of this week, the US dollar could still find support if safe-haven demand remains elevated.
Canadian dollar (CAD) pressured by weaker oil
The Canadian dollar (CAD) struggled for momentum on Friday as declining oil prices weighed on the commodity-linked currency.
Movements in crude markets are likely to continue steering the ‘loonie’ early this week, potentially exposing it to further downside if prices extend their fall.
Australian dollar (AUD) edges up before RBA minutes
The Australian dollar (AUD) pushed slightly higher during Monday’s Asian session, with traders positioning ahead of the release of minutes from the Reserve Bank of Australia’s (RBA) February meeting in hopes they reinforce expectations for additional rate hikes.
New Zealand dollar (NZD) subdued amid cautious sentiment
The New Zealand dollar (NZD) remained under pressure in overnight trade as a wary market mood curbed demand for the risk-sensitive currency.
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