Pound (GBP) muted following BoE remarks
The pound (GBP) traded sideways at the end of last week, following comments from Bank of England (BoE) Deputy Governor Dave Ramsden.
While Ramsden warned of inflation risks to the UK, he also suggested that conditions will sometimes require the BoE to ‘quicken’ its ‘gradual and careful approach’ to interest rate cuts.
Coming up, Sterling sentiment may come under pressure today, if the UK’s latest manufacturing PMI confirms the contraction in the factory sector deepened last month.
Euro (EUR) firms as German inflation holds steady
The euro (EUR) traded with modest gains on Friday, following the publication of Germany’s latest consumer price index.
February’s preliminary CPI figures reported inflation held at 2.3%, supporting the single currency as it led to a modest trimming of European Central Bank (ECB) rate cut bets.
Today sees the release of the latest CPI figures for the Eurozone as a whole. The euro may extend its gains if inflation beats forecasts to hold at 2.5% last month.
US dollar (USD) stalls as US inflation cools
The US dollar (USD) was rangebound at the end of last week as markets digested the latest US core PCE price index.
The Federal Reserve’s preferred indicator for inflation cooled from 2.9% to 2.6% in January, stoking Fed interest rate cut speculation and capping the US dollar’s Trump tariff-driven gains.
Looking ahead, the US will publish its latest ISM manufacturing PMI later today, with the ‘greenback’ poised to rise if US factory sector growth remained robust in February.
Canadian dollar (CAD) buoyed by positive GDP figures
The Canadian dollar (CAD) strengthened on Friday as Canada’s latest GDP figures reported a much stronger-than-expected expansion of growth in the last quarter of 2024.
CAD data is in short supply at the start of this week, potentially leaving movement in the ‘loonie’ to be driven by oil price dynamics. If prices continue to soften, it may reverse some of the Canadian dollar’s gains from last week.
Australian dollar (AUD) buoyed by positive Chinese PMI
The Australian dollar (AUD) edged higher in overnight trade, supported by stronger-than-expected PMI figures from China.
New Zealand dollar (NZD) wavers amid mixed market mood
The New Zealand dollar (NZD) struggled to find any lasting support in overnight trade as an uneven market mood offered only fleeting support for the risk-sensitive ‘kiwi’.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
