Pound (GBP) flat ahead of high-impact data
The pound (GBP) was rangebound at the start of this week, with GBP investors reluctant to alter their positions in the currency ahead of some high-impact UK economic releases.
Upcoming releases include the UK’s latest employment, inflation and PMI figures, which will also offer more insight into the country’s fiscal resilience and influence expectations for Bank of England (BoE) monetary policy in the coming months.
Up first is today’s jobs report, with Sterling already posting gains after a surprise fall in unemployment in August.
Euro (EUR) slides following French civil unrest
The euro (EUR) retreated through Monday’s session after a weekend of civil unrest raised political and fiscal uncertainty in France.
In addition to placing more pressure on the government, the unrest also triggered a fresh sell-off in France’s bond market, further driving up the cost of servicing the country’s debt.
Coming up, the euro may remain under pressure today if Germany’s latest ZEW economic sentiment index reports a deterioration of morale in the Eurozone’s largest economy this month.
US dollar (USD) pressured by positive risk flows
The US dollar (USD) was subdued yesterday as an improving market mood sapped demand for the safe-haven currency.
USD sentiment was also undermined by ongoing AI stock turmoil, which continues to dampen Federal Reserve interest rate expectations.
Looking ahead, the US dollar may catch fresh bids today if the latest ADP employment figures report an acceleration of employment growth in the first week of October.
Canadian dollar (CAD) firms as rising inflation boosts BoC rate hike bets
The Canadian dollar (CAD) trended broadly higher on Monday as an acceleration in domestic inflation stoked bets that the Bank of Canada (BoC) might hike interest rates at its next meeting.
The ‘loonie’ may extend these gains today if a further rise in oil prices reinforces the appeal of the commodity-linked currency.
Australian dollar (AUD) firms in upbeat trade
The Australian dollar (AUD) pushed higher overnight on Monday, supported by an improvement in market risk appetite.
New Zealand dollar (NZD) strengthened by RBNZ rate hike bets
The New Zealand dollar (NZD) also rallied in overnight trade as markets continued to price in more interest rate hikes from the Reserve Bank of New Zealand (RBNZ).
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