Pound (GBP) steady as investors await key data
The pound (GBP) traded within a narrow range at the beginning of this week, as investors held off making significant moves ahead of a busy run of UK economic releases.
The upcoming data includes the latest employment figures, inflation report and PMI surveys, all of which could shed further light on the resilience of the UK economy and shape expectations for Bank of England (BoE) policy in the months ahead.
The first major test comes today with the release of the latest jobs report, while Sterling has already found some support from an unexpected decline in unemployment in August.
Euro (EUR) retreats amid French unrest
The euro (EUR) came under pressure on Monday after a weekend of civil unrest added to political and fiscal uncertainty in France.
The demonstrations have increased pressure on the government and unsettled bond markets, pushing up borrowing costs and adding to concerns over the expense of servicing France’s substantial debt.
Looking ahead, the single currency could face further headwinds today if Germany’s latest ZEW economic sentiment index points to worsening confidence in the Eurozone’s largest economy.
US dollar (USD) weighed down by improved risk appetite
The US dollar (USD) struggled to gain traction yesterday as a more positive mood across financial markets reduced demand for safe-haven assets.
Ongoing volatility in AI-related stocks also continued to cloud the outlook for Federal Reserve policy, putting further pressure on expectations for interest rate increases.
The ‘greenback’ could find renewed support today if the latest ADP employment figures point to faster job creation during the first week of October.
Canadian dollar (CAD) rises as inflation lifts rate hike expectations
The Canadian dollar (CAD) strengthened broadly on Monday after an acceleration in domestic inflation prompted markets to reassess the likelihood of a Bank of Canada (BoC) interest rate hike at its next meeting.
The ‘loonie’ may build on its recent advance today if further gains in oil prices bolster demand for the commodity-sensitive currency.
Australian dollar (AUD) advances amid improving sentiment
The Australian dollar (AUD) moved higher in overnight trade on Monday, benefiting from a more upbeat mood across global markets and stronger appetite for risk-sensitive currencies.
New Zealand dollar (NZD) climbs on RBNZ tightening expectations
The New Zealand dollar (NZD) also made gains overnight as investors continued to increase their bets on further interest rate hikes from the Reserve Bank of New Zealand (RBNZ).
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.