 Sterling climbed broadly today, fueled by unexpectedly strong UK retail sales data that more than compensated for the lackluster consumer confidence report. Despite ongoing high interest rates and persistent inflation, British consumers appear to be resilient, continuing to spend. This bolsters the position of hawkish members within the BoE's MPC, who may push harder for a measured, gradual approach to reducing interest rates. Looking at the broader market, Australian Dollar has maintained its position as the top performer for the week, driven by post-FOMC risk-on sentiment. However, with risk appetite fading as the weekend approaches, Sterling, currently in second place, has a real chance of overtaking the Aussie. Meanwhile, New Zealand Dollar follows closely as the third strongest currency this week. On the downside, Japanese Yen remains the weakest performer, extending its selloff after BoJ's decision to hold rates steady earlier today. The rise in US and European bond yields has further weighed on the Yen, as the growing yield differential makes it less attractive. Dollar and Swiss Franc are also under pressure, lacking the safe-haven appeal in the current risk-on environment. Euro and Canadian Dollar remain relatively mixed in the middle.... |
