The British pound weakened against a broadly stronger U.S. dollar on Friday as currency markets focused on the upcoming U.S. non-farm payrolls report. The move was driven by pre-data positioning rather than any UK-specific news.
German government bond yields retreated this week, marking their strongest performance since late June, as a sharp pullback in oil prices and signs of slowing inflation halted a prolonged sell-off in European sovereign debt.
The U.S. dollar strengthened amid geopolitical uncertainty surrounding Iran and investor caution ahead of key U.S. employment data, leaving most Asian currencies trading in a narrow range.
The Canadian dollar is forecast to hold steady against its U.S. counterpart for the next three months before strengthening over the coming year, according to a poll of 34 foreign exchange strategists. Analysts cite fading market catalysts and a narrowing economic performance gap between Canada and the U.S.
The British pound edged lower against the U.S. dollar on Thursday as currency markets adopted a cautious stance pending the release of key U.S. employment data. Hawkish Federal Reserve commentary continued to support the greenback, while the Bank of England's recent dovish tone weighed on sterling.
German government bond yields are holding steady near three-week lows after a recent decline in crude oil prices tempered market expectations for an aggressive monetary tightening cycle from the European Central Bank.
Most Asian currencies were little changed as the U.S. dollar held near a seven-week low, with investors cautiously awaiting key U.S. labor market data and monitoring Middle East diplomatic talks.
The 30-year U.S. Treasury yield surged to its highest level since 2007 as investors grappled with ambiguous signals from the Federal Reserve on the future path of interest rates following its latest policy meeting.
The British pound gained against the U.S. dollar after the Bank of England kept its key interest rate at 3.75%, with a minority of policymakers voting for a hike, signaling a hawkish stance.
