Pound (GBP) flat as Bailey avoids mentioning policy
The pound (GBP) traded sideways through yesterday's session ahead of a speech by Bank of England (BoE) Governor Andrew Bailey.
GBP investors were keen for more insight into the bank's outlook on policy after previously raising rates at its November meeting, but Bailey's speech ultimately didn't touch on monetary policy.
Coming up, Bailey's colleague Clare Lombardelli will speak later today. As one of the bank's more hawkish policymakers, could her remarks trigger fresh gains for the pound?
Euro (EUR) flat amid ECB succession speculation
The euro (EUR) was also muted on Monday as the focus turned to who might succeed Christine Lagarde as President of the European Central Bank (ECB).
Both a policy hawk and dove appear to be the frontrunners in the race, and whoever helms the bank will have a significant impact on how the ECB communicates policy.
In the absence of any notable EUR data, the euro may trade without strong directional bias today.
US dollar (USD) slides as investors book profits
The US dollar (USD) opened this week on the defensive, being undermined by some profit-taking after rocketing higher at the end of the previous session.
USD was also pressured by positive risk flows, following a broad-based rebound across global stock markets.
Turning to today's session, the spotlight will be on the latest US consumer price index, with the US dollar poised to rally if rising inflation strengthens Federal Reserve interest rate expectations.
Canadian dollar (CAD) slides as Brent dives to two-month low
The Canadian dollar (CAD) drifted lower on Monday, with the commodity-linked currency being pressured by another sharp downturn in oil prices.
Expect the 'loonie' to extend these losses through today's session if oil prices remain in retreat.
Australian dollar (AUD) subdued as sentiment weakens
The Australian dollar (AUD) was left rangebound in overnight trade, after Australia's latest consumer and business confidence figures reported a continued deterioration in morale across the economy.
New Zealand dollar (NZD) buoyed by election relief
The New Zealand dollar (NZD) maintained a positive trajectory overnight on Monday as NZD investors continued to show relief that the ruling coalition appears to have the slimmest path to power.
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