Analysts at UBS project the EUR/GBP currency pair will gradually decline toward 0.84, citing the Bank of England's hawkish policy signals and a significant UK interest rate advantage over the Eurozone.
The U.S. dollar gained after producer price inflation data came in higher than expected, increasing bets for a Federal Reserve rate hike and sending Treasury yields soaring.
The British pound advanced against the U.S. dollar after official data showed a surprise increase in UK retail sales for August, while the dollar's recent rally paused.
The Japanese yen fell against a strengthening U.S. dollar even after the Bank of Japan raised its policy rate to a 31-year high, as the move was perceived as dovish and overshadowed by the Federal Reserve's hawkish monetary policy outlook.
The offshore yuan strengthened to its highest level since July 2022, supported by a series of stronger central bank fixings and an expansion of China's currency clearing capabilities ahead of a key US-China summit.
The Australian dollar strengthened against the U.S. dollar after RBA Governor Michele Bullock's hawkish testimony drove market expectations for a near-term interest rate hike to over 90%.
The Australian dollar gained against the U.S. dollar after RBA Governor Michele Bullock's hawkish remarks on inflation risks sent market expectations for a near-term interest rate hike soaring.
The yuan strengthened to its highest level since July 2022, supported by a series of stronger central bank fixings and a move to expand direct clearing for more currencies, ahead of a key U.S.-China presidential meeting.
The Japanese yen weakened against the dollar after the Bank of Japan's first interest rate hike to a 31-year high was accompanied by a split vote, suggesting a cautious path forward for monetary tightening. A strong U.S. dollar, underpinned by a hawkish Federal Reserve, also weighed on Asian currencies.
