Pound (GBP) firms as Gatwick plan to ‘kickstart growth’
Easing UK fiscal concerns opened a path for the pound (GBP) to firm yesterday, recovering a small portion of the losses suffered at the end of last week.
Chancellor Rachel Reeves underpinned this more sanguine outlook for the UK economy as she declared to be delivering the government’s promise to ‘kickstart the economy’ after approving plans for a second runway at Gatwick.
The UK’s preliminary PMIs will be in focus for GBP investors today. If service sector growth is shown to have moderated this month, it could exert some pressure on Sterling.
Euro (EUR) underpinned by improving consumer morale
The euro (EUR) appreciated on Monday, its gains being supported by the Eurozone’s latest consumer confidence figures.
September’s index rose from -15.5 to -14.9, beating forecasts but remaining well below its historical average.
Today also sees the release of the Eurozone’s preliminary PMIs for September. Could a modest acceleration in private sector activity provide some lift for the euro?
US dollar (USD) weakens as Fed speeches in focus
The US dollar (USD) got off to a slow start this week, ahead of several speeches by Federal Reserve policymakers.
USD investors were particularly focused on the first public comments by new Trump appointee Stephen Miran, as he was the lone dissenter calling for a steeper 50bps interest rate cut last week.
A speech by Jerome Powell will be closely watched by USD investors today as they look for insight into the Fed Chair’s outlook on monetary policy.
Canadian dollar (CAD) slides on PPI miss
The Canadian dollar (CAD) retreated on Monday as a shock slide in producer prices last month stoked bets for another interest rate cut from the Bank of Canada (BoC).
In the absence of any notable Canadian data, it’s likely the ‘loonie’ will take its cues from oil market developments today. If oil prices continue to soften, CAD exchange rates may weaken.
Australian dollar (AUD) stumbles amid private sector slowdown
The Australian dollar (AUD) retreated overnight on Monday as Australia’s latest PMIs reported a notable cooling of private sector activity this month.
New Zealand dollar (NZD) pressured by risk-off flows
The New Zealand dollar (NZD) also trended lower in overnight trade as a cautious market mood sapped the appeal of the currency.
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