Pound (GBP) flat following BoE Pill comments
The pound (GBP) was subdued at the end of last week, following remarks from Bank of England (BoE) Chief Economist Huw Pill.
Pill stressed that the bank's interest rate hike on Thursday was pre-emptive and we would not see a repeat of the 2022 hiking cycle.
GBP investors will look to a speech by BoE Governor Andrew Bailey for fresh impetus today, with Sterling potentially coming under pressure if he also pushes back against some of the more hawkish expectations for monetary policy in the coming months.
Euro (EUR) sidelined by USD strength
The euro (EUR) struggled to attract support on Friday as demand for the single currency was suppressed by its negative correlation with the US dollar (USD).
This overshadowed the release of Germany's latest industrial production figures, which outpaced forecasts and may have otherwise lifted EUR.
This week's session starts with the publication of Germany's latest trade figures, with a surprisingly strong rebound in export growth offering modest support to the euro.
US dollar (USD) jumps as AI stock selloff spooks markets
The US dollar ended last week's session on strong footing, as the global AI selloff sent investors flocking to safe-haven assets.
Further gains then followed the publication of the latest US non-farm payroll report, as the US economy added far more jobs than expected in October, cementing bets the Federal Reserve will hike interest rates in December.
The US dollar is already walking back some of these gains at the start of this week as the currency is undermined by some profit-taking.
Canadian dollar (CAD) steady despite weak labour report
The Canadian dollar (CAD) was remarkably resilient on Friday, with the currency trading sideways against most of its peers, despite a rise in domestic unemployment.
Looking ahead, the 'loonie' may struggle to hold its ground if oil prices continue to retreat at the start of this week.
Australian dollar (AUD) buoyed by positive risk flows
The Australian dollar (AUD) firmed through Monday's Asian session as a weaker US dollar helped to boost market risk appetite.
New Zealand dollar (NZD) jumps as election results continue to trickle in
The New Zealand dollar (NZD) opens this week's session on firm footing as the results from New Zealand's general election over the weekend suggest that the ruling coalition may have secured the slimmest of majorities.
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