 Sterling has faced significant selling pressure as markets reacted negatively to the Labour government's budget announcement. Some analysts draw comparisons to the free fall following former Prime Minister Liz Truss's mini-budget two years ago. Yet, the current selloff is notably milder. The focus now is on whether Sterling can stabilize in the coming days or if further downside looms. Aussie is also underperforming, ranking as the second weakest currency this week after Sterling, while Loonie is the third weakest. Conversely, Euro is maintaining its position as the week’s strongest performer, bolstered by better-than-expected GDP growth and inflation data. These robust figures have reduced the urgency for ECB to accelerate its rate-cutting cycle, allowing for a steadier monetary policy approach. Swiss Franc is the second strongest currency, benefiting from safe-haven flows and buying interest against Sterling. Kiwi dollar ranks third in strength, supported by the selloff in Aussie, which sometimes affects investor sentiment toward its regional counterpart. Dollar and Yen are trading in mixed fashion, occupying middle positions among major currencies. Market are now turning their attention to today's non-farm payroll report in the US, which could influence the greenback's short-term direction. However, the medium-term trend for Dollar is to be shaped by the upcoming presidential election next week.... |
