Pound (GBP) supported by firmer BoE rate expectations
The pound (GBP) attracted broad support at the beginning of this week as expectations grew that the Bank of England (BoE) could raise interest rates in November.
BoE Deputy Governor Dave Ramsden added to these expectations on Monday, indicating that he would favour tighter monetary policy should inflationary pressures remain elevated.
With the UK economic calendar lacking any major releases today, Sterling could instead take its cues from wider currency market trends.
Euro (EUR) pressured by spike in European gas prices
The euro (EUR) weakened against most of its major counterparts on Monday as a sharp rise in European gas prices fuelled concerns among investors over the region’s economic outlook.
The single currency was also hindered by its inverse relationship with the US dollar (USD), which remained well supported.
Germany’s latest economic sentiment data could provide some respite for the euro today, provided business confidence across the Eurozone’s largest economy continued to strengthen in September.
US dollar (USD) gains as energy concerns intensify
The US dollar continued to advance yesterday as another jump in global oil prices increased demand for the safe-haven currency.
Brent crude surged above $108 per barrel on Monday after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz.
Attention now turns to the latest US JOLTs job openings data, with a projected decline in vacancies potentially weighing on the ‘greenback’.
Canadian dollar (CAD) weakened amid trade tensions
The Canadian dollar (CAD) slipped on Monday as persistent uncertainty surrounding the US-Canada trade dispute outweighed the support the commodity-linked currency could have gained from surging oil prices.
Canada’s latest GDP figures are due later today and could lend some support to the ‘loonie’ if the economy recorded a monthly rebound in August.
Australian dollar (AUD) tumbles despite RBA hike
The Australian dollar (AUD) came under heavy selling pressure overnight following the Reserve Bank of Australia’s (RBA) latest interest rate decision. With the anticipated 25bps increase already fully priced in, attention instead centred on Governor Michelle Bullock’s remarks, which were more dovish than expected and triggered a sharp reversal in the ‘Aussie’.
New Zealand dollar (NZD) slips as risk appetite fades
The New Zealand dollar (NZD) also lost ground overnight as continued deterioration in market risk appetite weighed on demand for the risk-sensitive currency.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.