Pound (GBP) slides as BoE leaves rates unchanged
The pound (GBP) retreated yesterday as the Bank of England (BoE) voted to leave interest rates on hold again following its September policy meeting.
However, the downside in Sterling was tempered as UK borrowing costs fell on the bank’s announcement that it would slow the pace of its bond sale programme.
Sterling may fare a little better today as the UK’s latest retail sales data reported a surprise rebound in consumer spending in August.
Euro (EUR) undermined by revised inflation data
The euro (EUR) was initially subdued on Thursday, as Wednesday’s surge in the US dollar (USD) continued to drag on the single currency.
EUR sentiment then remained pressured by the publication of the Eurozone’s latest consumer price index, as inflation was revised slightly lower in August’s finalised figures.
European Central Bank (ECB) President Christine Lagarde is scheduled to speak later today. Could a hawkish tilt to her remarks offer some reprieve for the euro?
US dollar (USD) pressured by profit-taking
The US dollar ticked lower on Thursday in the aftermath of the Federal Reserve’s latest interest rate decision.
Having soared late on Wednesday after the Fed delivered a particularly hawkish rate hike, the ‘greenback’ was forced to relinquish a portion of its gains as investors booked their profits.
Coming up, the latest US industrial production figures could offer fresh support for the US dollar today, if August’s data reports factory output picked up again last month.
Canadian dollar (CAD) dented by softer oil prices
The Canadian dollar (CAD) was muted yesterday as easing oil supply fears saw Brent crude retreat to $102 a barrel.
Looking ahead, expect movement in the ‘loonie’ to remain closely tied to oil price dynamics through the remainder of the week.
Australian dollar (AUD) bolstered by hawkish RBA remarks
The Australian dollar (AUD) rallied through Friday’s Asian session, following remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock, in which she warned that rising inflation risks may necessitate another interest rate hike.
New Zealand dollar (NZD) stalls in cautious trade
The New Zealand dollar (NZD) was left muted in overnight trade as fresh market uncertainty limited risk appetite.
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