Pound (GBP) subdued as CPI data fails to lift BoE rate bets
The pound (GBP) traded on the back foot against the majority of its peers yesterday, following the release of the UK’s latest consumer price index.
While July’s CPI figures reported UK inflation accelerated to a four-month high, this was not enough to shift expectations that the Bank of England (BoE) will leave interest rates on hold through the remainder of 2026.
Meanwhile, a brief pause in UK data could leave Sterling to trade without direction today.
Euro (EUR) underpinned by USD weakness
The euro (EUR) trended broadly higher on Wednesday, drawing support from its strong negative correlation with the US dollar (USD).
However, the upside in EUR ultimately proved limited in the wake of comments from European Central Bank (ECB) Governor Christine Lagarde, who warned of the potential risks if the EU misses out on the AI revolution.
Coming up, the Euro may advance through today’s session if the minutes from the ECB’s latest policy meeting hint that policymakers are likely to pursue a rate hike in the coming months.
US dollar (USD) plunges on US bond buyback plans
The US dollar faced heavy selling pressure on Wednesday, after the US Treasury announced it would double the buyback of long-dated US debt.
The subsequent release of the minutes from the Federal Reserve’s July policy meeting then failed to reverse this decline, despite striking a broadly hawkish note.
Coming up, the US dollar may remain under pressure today if data shows that US initial jobless claims rose again last week.
Canadian dollar (CAD) undermined by tariff concerns
The Canadian dollar (CAD) weakened against the majority of its peers on Wednesday, amid only a modest uptick in oil prices and ongoing concerns about trade tensions with the US.
Looking ahead, the ‘loonie’ may face headwinds today as Canada’s latest PPI figures are expected to report that domestic inflation continued to moderate last month.
Australian dollar (AUD) undermined by weak jobs data
The Australian dollar (AUD) ticked lower through today’s Asian trading session, following lacklustre jobs data that reported a shock slump in employment growth last month.
New Zealand dollar (NZD) bolstered by positive risk flows
The New Zealand dollar (NZD) maintained its recent bullish momentum in overnight trade as risk appetite continued to improve.
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