Pound (GBP) firms amid BoE speculation
The pound (GBP) edged higher against many of its counterparts at the end of last week amid a hardening of Bank of England (BoE) rate hike expectations.
Market odds that the BoE will tighten monetary policy before the end of the year crept higher on Friday, reflecting expectations the UK faces persistent inflationary pressures.
Movement in the pound may be limited today, with GBP investors likely to be reluctant to make any bullish bets ahead of a slew of high-impact UK data coming up later in the week.
Euro (EUR) rangebound as GDP prints as forecast
The euro (EUR) held steady on Friday, as the Eurozone's latest GDP growth figures printed in line with expectations.
The second estimate of growth between April and June confirmed the bloc grew at a healthy 0.4%, after stalling in the first quarter.
Eurozone data is in short supply at the start of this week, which may see the euro trade without strong directional bias today.
US dollar (USD) tumbles as high premium placed on US bonds
The US dollar (USD) closed last week's session on a sour note amid a worrying spike in long-dated US Treasury bonds.
Compounding the US dollar’s losses was the publication of the latest US retail sales figures, which reported a shock contraction in consumer spending last month.
The USD selling bias appears to be gathering pace this morning, amid a further trimming of Federal Reserve rate hike bets.
Canadian dollar (CAD) supported by rising oil prices
The Canadian dollar (CAD) ticked broadly higher on Friday as the commodity-linked currency was underpinned by rising oil prices.
However, these gains may be challenged at the start of this week's session if Canada's consumer price index reports another cooling of inflation last month.
Australian dollar (AUD) rallies in bullish trade
The Australian dollar (AUD) got off to a strong start this week, strengthening through today's Asian session amid a prevailing risk-on mood.
New Zealand dollar (NZD) firms amid improving sentiment
The New Zealand dollar (NZD) also strengthened in overnight trade as market risk appetite improved.
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