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The latest forex coverage from the TrustFinance editorial desk.
The British pound fell from a multi-week high on Thursday after U.S. producer price inflation came in hotter than expected, strengthening the dollar. The move came as the European Central Bank also raised interest rates.
Sovereign bond yields rose sharply on Thursday after the European Central Bank raised interest rates and a stronger-than-expected U.S. producer price report intensified expectations for further monetary tightening by the Federal Reserve.
The U.S. dollar found a foothold on Wednesday, halting a recent decline and causing a minor pullback in the British pound as markets await crucial U.S. inflation figures and central bank policy decisions.
The euro maintained its position near a two-week peak as traders fully anticipate a 25-basis-point interest rate hike from the European Central Bank. Meanwhile, the U.S. dollar traded in a tight range as investors awaited key inflation data.
The European Central Bank is set to raise interest rates by 25 basis points this week, but analysts at Citi believe the move is already fully priced in by markets, which could cap any significant gains for the euro.
The benchmark 10-year U.S. Treasury yield surged past the key 5% psychological level on Friday after August's Consumer Price Index report came in hotter than expected, bolstering expectations for an imminent Federal Reserve rate hike.
The British pound held steady against the U.S. dollar, largely ignoring better-than-expected domestic growth data as investors focused on an upcoming U.S. inflation report that could solidify the case for another Federal Reserve rate hike.
The Canadian dollar weakened slightly against its U.S. counterpart, as the traditional support from strong oil prices was offset by investor caution ahead of crucial American inflation figures.
The British pound was little changed despite a surprise uptick in UK economic growth, as currency markets focused on upcoming U.S. inflation data expected to cement the case for another Federal Reserve rate increase.
