Pound (GBP) dips amid profit-taking
The pound (GBP) was muted at the end of last week as the currency fell victim to some profit-taking.
This followed the sharp rise in Sterling on Thursday after a narrower-than-expected vote by the Bank of England (BoE) to cut interest rates.
Looking ahead, notable GBP data is in short supply at the start of this week, likely leaving the pound without direction.
Euro (EUR) slips as markets wary of Trump-Putin meeting
The euro (EUR) remained largely subdued on Friday, as markets took a cautious stance ahead of an expected meeting between US President Donald Trump and Russian President Vladimir Putin later this week.
While there are hopes that a meeting between the two leaders could be the first step towards peace in Ukraine, investors appear sceptical about whether a meaningful agreement is actually achievable.
In the absence of any notable Eurozone data, uncertainty ahead of the Trump-Putin meeting could continue to cast a shadow over the euro today.
US dollar (USD) buoyed by tariff jitters
The US dollar (USD) closed last week’s session on the front foot as investors favoured the safe-haven currency amid a bearish market mood.
However, President Trump’s nomination of a dovish ally for the vacant FOMC seat on Thursday ensured that dovish rate bets ultimately capped USD demand.
USD investors will look to a speech by Federal Reserve policymaker Michelle Bowman for impetus today. If she adds her voice to the growing dovish chorus within the US central bank, the US dollar is likely to falter.
Canadian dollar (CAD) muted on mixed jobs data
The Canadian dollar (CAD) traded sideways on Friday, after domestic jobs data reported unemployment remained steady in July, but that net employment suffered its most significant drop since January 2022.
Oil price dynamics will likely drive movement in the ‘loonie’ at the start of this week, with another drop in prices likely to exert pressure on CAD exchange rates.
Australian dollar (AUD) flat as RBA rate decision looms
The Australian dollar (AUD) was left to trade sideways at the start of this week’s session, with AUD investors reluctant to alter their positions in the currency ahead of the Reserve Bank of Australia’s (RBA) interest rate decision on Tuesday.
New Zealand dollar (NZD) subdued in cautious trade
The New Zealand dollar (NZD) was muted through Monday’s Asian trading session amid a risk-averse market mood.
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