Pound (GBP) buoyed by BoE Bailey comments
The pound (GBP) traded with modest support yesterday, as markets digested remarks from Bank of England (BoE) Governor Andrew Bailey.
Bailey warned that inflation risks are growing as energy prices remain persistently high, and that the BoE is 'fully committed' to returning inflation to target.
Meanwhile, Sterling may struggle for direction today, amid a lull in notable UK economic indicators.
Euro (EUR) pressured by ongoing Eurozone bond turmoil
The euro (EUR) continued to face resistance on Thursday amid the ongoing selloff in European bond markets.
France's mounting debt crisis remained a key point of concern for EUR investors as worries over the debt burden of the Eurozone's second-largest economy continued to spill over into regional markets.
With no signs of the debt crisis abating anytime soon, the euro will likely remain exposed to headwinds through the remainder of this week's session.
US dollar (USD) buoyed by global inflation jitters
The US dollar (USD) trended broadly higher through yesterday's session, with the safe-haven currency catching modest bids as rising energy prices stoked inflation fears.
The upside in USD was also supported by a surprise fall in US initial jobless claims, with last week's claims falling to their lowest levels since mid-July.
Closing out this week's session will be the publication of the University of Michigan's latest US consumer sentiment index. Will a deterioration in sentiment this month lead the US dollar to relinquish some of its recent gains?
Canadian dollar (CAD) bolstered by oil price rise
The Canadian dollar (CAD) trended broadly higher on Thursday, with the commodity-linked currency being underpinned by the latest rise in global oil prices.
Canada will publish its latest jobs report later today, with the 'loonie' poised to fall if September's data reports the jobs market shrank for the second consecutive month.
Australian dollar (AUD) rallies in risk-on trade
The Australian dollar (AUD) strengthened in overnight trade as a pullback in oil prices helped to cheer markets.
New Zealand dollar (NZD) buoyed by cautious optimism
The New Zealand dollar (NZD) also firmed overnight amid the improving market mood.
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