Pound (GBP) strengthens following Burnham’s first keynote policy address
The pound (GBP) firmed yesterday, buoyed by a largely upbeat response to Andy Burnham’s first major address since announcing his campaign to become the UK’s next Prime Minister.
Burnham set out an ambitious agenda to redistribute power across the UK and drive ‘growth in every postcode’. While the speech lacked specific policy detail, UK borrowing costs eased in its aftermath, helping to lift Sterling.
Today’s session began with the release of the UK’s latest GDP figures. Confirmation that the UK economy grew at a solid pace in the first quarter could provide the pound with additional support this morning.
Euro (EUR) climbs as ECB begins Sintra Forum
The euro (EUR) advanced on Monday as the European Central Bank’s (ECB) annual Sintra Forum on Central Banking got underway.
In her opening remarks, ECB President Christine Lagarde adopted a hawkish stance, indicating that the ECB can raise interest rates to tackle inflation ‘without fear it becomes a source of financial stress’.
Looking ahead, Germany is set to release its latest inflation data today. The single currency could come under pressure if price growth in the Eurozone’s largest economy continued to cool this month.
US dollar (USD) extends losses
The US dollar (USD) started the week on the back foot, with the currency continuing to suffer from the bearish momentum seen at the end of last week.
This appeared to be tied to some lingering profit-taking, alongside a modest improvement in risk appetite during the European trading session.
Turning to today, the US dollar could regain some ground. Upcoming data is forecast to show resilient hiring activity in May and an improvement in consumer confidence in June.
Canadian dollar (CAD) weakens despite firmer oil prices
The Canadian dollar (CAD) slipped on Monday, even as oil prices edged higher amid renewed uncertainty in the Middle East.
Canada’s latest GDP release could place additional pressure on the ‘loonie’ later today, with month-on-month growth expected to have slowed in May.
Australian dollar (AUD) falls despite hawkish RBA minutes
The Australian dollar (AUD) weakened overnight on Monday, as a cautious market mood prevented the ‘Aussie’ from benefiting from the hawkish minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting.
New Zealand dollar (NZD) continues to rebound
The New Zealand dollar (NZD) continued to attract support in overnight trade as the ‘kiwi’ extended its recent corrective recovery.
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