The GBP/USD exchange rate has faced challenges, with recent concerns about a UK recession and hawkish Fed rhetoric impacting the pound’s performance. This has led to a decline in the exchange rate due to UK retail weakness and the anticipation of monetary statements from influential entities such as the Federal Reserve.
EURCAD fundamental bias is bearish, but in the short term, it may push highs due to the BoC meeting on Wednesday, with expectations for a 95% hold on interest rates. July inflation in Canada rose to 3.3 percent from 2.8 percent previously and a forecast of 3 percent, while the core version was flat at 3.2 percent versus an expected decline to 2.8 percent
Gold, which posted its biggest weekly gain since April as the dollar weakened and interest rate hike expectations eased, was boosted by declining inflation data.
Consumer inflation in Australia eased more than expected, according to data released on Wednesday, dampening hopes of another rate hike by the Reserve Bank of Australia next week and putting further downward pressure on the Australian dollar.
Consumer inflation expectations in Australia rose to 5% in May from 4.6% in April, the latest data showed. Earlier this month, the Reserve Bank of Australia unexpectedly raised the cash rate by 25 basis points to 3.85 percent, saying further tightening may be needed to ensure inflation returns to target within a reasonable timeframe.