Pound (GBP) trades sideways in quiet trade
The pound (GBP) was listless through yesterday’s session in the absence of any notable UK economic data.
This left GBP investors to wrestle with the mixed data published at the end of last week, which continued to paint an uncertain outlook for the UK economy.
Bank of England (BoE) Chief Economist Huw Pill will deliver a speech later today. If he maintains a hawkish outlook and continues to urge caution on further interest rate cuts, Sterling may strengthen.
Euro (EUR) spikes on German election result
The euro (EUR) got off to a solid start on Monday, with the currency buoyed by the result of Germany’s federal election, amid hopes a more stable ‘grand coalition’ will help revive the fortunes of the Eurozone’s largest economy.
However, the single currency struggled to sustain these gains throughout the session, particularly in the wake of weaker-than-expected German business confidence.
Coming up, European Central Bank (ECB) policymaker Isabel Schnabel is scheduled to speak later today. As one of the more hawkish voices within the bank, her remarks may prove supportive of the euro.
US dollar (USD) muted in risk-positive trade
The US dollar (USD) got off to soft start this week as a risk-positive mood initially limited safe-haven demand.
However, the downside in the 'greenback’ bounced back later in the session as fresh geopolitical uncertainty soured sentiment.
USD investors will look to speeches by several Federal Reserve policymakers for fresh impetus on Tuesday. A hawkish consensus may bolster USD exchange rates.
Canadian dollar (CAD) flat as oil prices stall
The Canadian dollar (CAD) traded in a narrow range on Monday as a stalling of oil prices offered limited trading impetus for the commodity-linked currency.
CAD data remains in short supply today, which is likely to leave movement in the ‘loonie’ tied to oil price dynamics.
Australian dollar (AUD) flip-flops in mixed trade
The Australian dollar (AUD) initially firmed in overnight trade as a pullback in the US dollar bolstered market risk appetite, before a souring mood wiped out these gains by the start of the European trading session.
New Zealand dollar (NZD) retreats as sentiment sours
The New Zealand dollar (NZD) also fluctuated in overnight trade amid the shifting market mood.
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