Pound (GBP) buoyed by BoE Pill Comments
The pound (GBP) edged higher at the end of last week, in response to comments from Bank of England (BoE) Chief Economist Huw Pill.
Pill claimed that the BoE still has more work to do in taming inflation and reiterated his view that policy needs to remain restrictive to achieve this.
Meanwhile, the pound may be trapped in a narrow range today with GBP investors reluctant to alter their positions as they brace for high-impact UK economic releases later in the week.
Euro (EUR) rangebound as GDP holds steady
The euro (EUR) held its ground on Friday, as the Eurozone’s latest GDP reading printed in line with expectations.
Data published at the end of last week confirmed the bloc’s economy expanded 0.3% in the last quarter of 2025, maintaining the pace set in Q3.
Turning to the start of this week, the Eurozone’s latest industrial production release could drag on the euro as factory output is forecast to have slowed in December.
US dollar (USD) gains curtailed by soft inflation
The US dollar (USD) wobbled at the end of last week, as the latest US consumer price index reversed the currency’s initial gains.
Annual inflation decelerated at a faster-than-expected pace in January, trimming some USD investors’ more hawkish Federal Reserve interest rate bets.
US economic releases are in short supply at the start of this week, but the US dollar may still appreciate if recent safe-haven demand persists.
Canadian dollar (CAD) weighed down by soft oil prices
The Canadian dollar (CAD) was muted through Friday’s session as softening oil prices reflected poorly on the commodity-linked currency.
Oil price dynamics will likely continue to influence the ‘loonie’ at the start of this week, potentially leading to further pressure if prices continue to slip.
Australian dollar (AUD) firms ahead of RBA minutes
The Australian dollar (AUD) edged higher through Monday’s Asian trading session, as AUD investors expect the upcoming release of the minutes from the Reserve Bank of Australia's (RBA) February policy meeting to cement bets for further interest rate hikes.
New Zealand dollar (NZD) muted in cautious trade
The New Zealand dollar (NZD) was subdued in overnight trade as a cautious mood saw investors shy away from the risk-sensitive currency.
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