Dollar Holds Steady After Volatile Trading; Canadian Dollar and Sterling Weaken
The US dollar traded relatively steady after fluctuating earlier in the session as investors monitored developments in the conflict between the United States and Iran. Meanwhile, the Canadian dollar and pound sterling weakened against the greenback.
The Bloomberg Dollar Spot Index, which tracks the US currency against a basket of major peers, was little changed after several swings during the day. US Treasuries extended their losses, while UK government bonds came under heavier pressure.
The Canadian dollar declined after data showed that inflation in Canada slowed more than expected in June, partly due to lower gasoline prices.
USD/CAD rose 0.3% to 1.4060 following the release of the inflation report. The Canadian dollar had earlier fallen to its weakest level of the day as the data increased expectations that the Bank of Canada may have more room to maintain a less restrictive monetary policy stance.
Sterling also weakened against the US dollar, with GBP/USD slipping 0.1% to 1.3433. The pound touched its intraday low after newly appointed UK Prime Minister Andy Burnham said the government would consider using flexibility within the country’s existing fiscal rules to fund its budget.
The remarks raised concerns about the UK’s fiscal outlook and government borrowing, adding pressure to both sterling and British government bonds.
The euro also moved lower against the dollar. EUR/USD fell 0.2% to 1.1421, marking its third consecutive day of declines.
Movements across major G10 currencies remain driven by a combination of geopolitical developments, inflation data, and shifting expectations for fiscal and monetary policy.
Source : Newsmaker.id
