Pound (GBP) climbs despite dovish tilt to BoE Bailey comments
The pound (GBP) pressed higher against the majority of its peers at the end of last week, with GBP investors seemingly unfazed by dovish remarks from Bank of England (BoE) Governor Andrew Bailey.
Speaking at the Institute of International Finance annual members’ meeting, Bailey suggested that evidence of second-round inflation has so far been ‘quite subdued’.
Turning to today’s session, Sterling may be left to trade in a narrow range as GBP investors brace for a stream of high-impact UK macroeconomic data coming later in the week.
Euro (EUR) subdued amid ongoing France uncertainty
The euro (EUR) drifted lower against most of its peers on Friday, as EUR sentiment continued to be weighed down by French fiscal concerns.
France’s debt burden shows no sign of easing as markets remain sceptical about the government’s ability to pass its 2027 budget.
The euro faces fresh selling pressure at the start of this week, following a weekend of riots and looting across France.
US dollar (USD) sinks on Fed Warsh remarks
The US dollar (USD) continued to soften at the end of last week as investors almost completely priced out any chances of the Federal Reserve raising interest rates this month.
This followed comments from Fed Chair Kevin Warsh, who said that recent inflation had not altered his assessment of the US economy, in addition to refusing to outline a policy path for the US central bank.
Further losses may follow for the US dollar at the start of this week, assuming that risk flows remain broadly positive.
Canadian dollar (CAD) falters as oil prices dip
The Canadian dollar (CAD) was left on the defensive on Friday as a softening of oil prices dampened the appeal of the commodity-linked currency.
Canada’s consumer price index could strengthen the ‘loonie’ latest today, if an acceleration of inflation last month is seen as placing more pressure on the Bank of Canada (BoC) to raise interest rates.
Australian dollar (AUD) strengthens on hawkish RBA comments
The Australian dollar (AUD) opens this week’s session on the front foot, accelerating through Monday’s Asian session after a Reserve Bank of Australia (RBA) policymaker hinted that interest rates may need to rise again.
New Zealand dollar (NZD) buoyed by risk-on flows
The New Zealand dollar (NZD) edged higher in overnight trade, amid a modest improvement in market risk appetite.
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