Pound (GBP) firms as Burnham delivers first major policy speech
The pound (GBP) strengthened yesterday, supported by a broadly positive reaction to Andy Burnham’s first major speech since confirming his bid to become the UK’s next Prime Minister.
Burnham outlined an ambitious plan to rebalance power across the country and boost ‘growth in every postcode’, and although it was light on detail, UK borrowing costs fell following his speech.
Today’s session opened with the publication of the UK’s latest GDP figures, with confirmation the UK economy expanded at a healthy clip in the first quarter potentially offering further support to Sterling this morning.
Euro (EUR) firms as ECB opens Sintra Forum
The euro (EUR) trended higher on Monday amid the opening of the European Central Bank’s (ECB) annual Sintra Forum on Central Banking.
In her introductory speech, ECB President Christine Lagarde struck a hawkish tone, suggesting the ECB can tighten monetary policy to combat inflation ‘without fear it becomes a source of financial stress’.
Looking ahead, Germany will publish its latest inflation figures today, with the single currency poised to weaken if price pressures in the Eurozone’s largest economy continued to ease this month.
US dollar (USD) continues to lose momentum
The US dollar (USD) got off to a soft start this week as the currency retained some of its bearish momentum from Friday’s session.
This was linked to some lingering profit-taking as well as a modest improvement in risk sentiment through the European trading session.
Turning to today’s session, the US dollar may enjoy fresh support. New data releases are expected to show robust hiring activity in May and a rise in consumer confidence in June.
Canadian dollar (CAD) slips despite uptick in oil prices
The Canadian dollar (CAD) dipped on Monday, despite oil prices ticking higher amid the fresh uncertainty in the Middle East.
Canada’s latest GDP print may weigh on the ‘loonie’ later today as month-on-month growth is forecast to have slowed in May.
Australian dollar (AUD) slides despite hawkish RBA minutes
The Australian dollar (AUD) retreated overnight on Monday, as a cautious market mood left the ‘Aussie’ unable to capitalise on the hawkish minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting.
New Zealand dollar (NZD) extends recovery
The New Zealand dollar (NZD) continued to catch bids in overnight trade amid an ongoing correction in the ‘kiwi’
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