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Sterling set for longest losing streak since September
Sterling heads for its longest losing streak since September, as market volatility and domestic uncertainties weigh on the currency.
Sterling faces longest losing streak since last September
Canada’s jobless rate steady at 6.4%
Fed signals more cooling needed before rate cuts
The British pound held above $1.2730 on Friday, but the currency is on track for a fourth consecutive weekly decline, marking its longest losing streak since September last year. the pound has been under pressure due to the bank of England’s recent rate cut and the potential for further easing as policymakers respond to slowing inflation. this shift in monetary policy has left traders grappling with mixed signals, as they navigate global economic uncertainties alongside domestic challenges in the uk. weak economic data from the us and volatility in Japanese markets have added to the unease. domestically, anti-immigration protests and concerns over potential tax hikes have further weighed on sentiment. Despite an initial boost following the labour party’s election victory, the pound’s gains have since been eroded by ongoing market instability and the prospect of more rate cuts.
Canada’s jobless rate holds steady at 6.4%
Canada’s unemployment rate remained unchanged at 6.4% in July, defying expectations for a slight increase to 6.5%. the figure, which matches the January 2022 high, suggests the labour market is beginning to show signs of softening, as anticipated by the bank of Canada following its recent interest rate cuts.
Fed’s Schmid: more cooling needed in labour market
Kansas City federal reserve president Jeff Schmid has said that while inflation is nearing the central bank’s 2% target—currently around 2.5%—more progress is needed before any policy adjustments can be made. Speaking at an event overnight, Schmid noted that if inflation continues to decline, confidence would grow that the fed is on track to achieve price stability. despite concerns raised by a weak jobs report, Schmid downplayed the need for aggressive monetary action, describing the economy as resilient with strong consumer demand and a labour market that, while cooling, remains healthy. he added that the fed’s current policy stance is not overly restrictive, but further cooling in the labour market may be necessary to bring inflation down further.
