Pound (GBP) rangebound in quiet trade
The pound (GBP) was muted through yesterday’s session, with the currency’s recent bullish momentum fading amid a lull in UK data.
Sterling’s pause follows sharp gains for the currency through the first half of August as upbeat economic indicators and hawkish shift within the Bank of England (BoE) have resonated with investors.
UK data remains in short supply today, likely leaving movement in the pound to reflect broader market trends.
Euro (EUR) fluctuates as markets wary of Trump-Zelenskyy meeting
The euro (EUR) was initially subdued on Monday as EUR investors nervously awaited US President Donald Trump’s meeting with his Ukrainian counterpart, Volodymyr Zelenskyy, and EU leaders.
However, the single currency mounted a recovery later in the session, after the US offer to help guarantee security was hailed as ‘real progress’ towards peace.
In the absence of any notable Eurozone economic releases, the euro may trade without a strong directional bias today.
US dollar (USD) firms in cautious trade
The US dollar (USD) edged higher at the start of this week amid a sense of caution ahead of the Trump-Zelenskyy meeting.
However, these gains remained modest, with dovish Federal Reserve interest rate expectations continuing to exert pressure on the ‘greenback’.
Looking ahead, with the Fed's annual Jackson Hole symposium set to get underway in the second half of the week, movement in the US dollar may be limited today.
Canadian dollar (CAD) muted as oil prices slip
The Canadian dollar (CAD) struggled to attract support on Monday as softening oil prices dented the appeal of the commodity-linked currency.
Canada will publish its consumer price index later today. The ‘loonie’ may stumble if July’s CPI figures report that inflation continues to decelerate, as this places more pressure on the Bank of Canada (BoC) to cut interest rates.
Australian dollar (AUD) stumbles despite positive consumer sentiment
The Australian dollar (AUD) trended lower overnight on Monday, with a better-than-expected improvement in Australian consumer confidence this month, failing to underpin the ‘Aussie’.
New Zealand dollar (NZD) steady ahead of RBNZ rate decision
The New Zealand dollar (NZD) traded in a narrow range in overnight trade as NZD investors braced for the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.
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