Pound (GBP) climbs on BoE Pill comments
The pound (GBP) ticked higher at the end of last week, recouping some of Thursday’s losses following comments from Bank of England Chief (BoE) Economist Huw Pill.
Pill warned against the bank 'drawing too much comfort’ from an expected fall in inflation, suggesting that this dip is likely to be driven by temporary factors.
Turning to the start of this week, UK political uncertainty could pose a risk to Sterling, with Prime Minister Keir Starmer fighting to win back the support of Labour MPs following a bruising week that concluded with the resignation of his closest adviser.
Euro (EUR) dented by German industrial disappointment
The euro (EUR) faced headwinds on Friday, with the release of weaker-than-expected German industrial data.
December’s data reported a 1.9% decline in industrial production, raising fresh concerns about the resilience of the Eurozone’s largest economy.
Meanwhile, the euro may be left adrift today amid a lull in upcoming Eurozone data.
US dollar (USD) dented by positive risk flows
The US dollar (USD) trended broadly lower at the end of last week, with the currency appearing to lose out amid a tentative recovery in risk appetite.
This downturn in USD came despite an unexpected improvement in US consumer sentiment this month.
USD investors may be wary at the start of this week’s session as they await key US payroll and inflation figures that could impact bets for a Federal Reserve interest rate cut in March.
Canadian dollar (CAD) firm as unemployment slides
The Canadian dollar (CAD) strengthened on Friday, as CAD investors welcomed a surprise fall in Canadian unemployment last month.
Coming up, the ‘loonie’ may maintain this positive momentum if oil prices continue to trend upward at the start of this week.
Australian dollar (AUD) buoyed by hawkish RBA signal
The Australian dollar (AUD) got off to a positive start this week, climbing through Monday’s Asian trading session in response to recent remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock hinting at the need for more monetary tightening.
New Zealand dollar (NZD) firms in risk-positive trade
The New Zealand dollar (NZD) also firmed in overnight trade, underpinned by a cautiously optimistic market mood.
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