Powell suggests flexibility in policy

Yesterday's currency recap

USD was once again at the mercy of the markets with GBPUSD and EURUSD hitting fresh multi-year highs after Federal Reserve (Fed) Chair Powell hinted at flexibility in the Fed path of monetary easing, contrasting with his patient and cautious stance from last week's Fed meeting. US consumer confidence also slumped in June due to lingering concerns regarding the impact of tariffs on the economy and the job market.

CPI held steady in Canada whilst core measures eased slightly but the numbers shouldn’t have too much impact at present on the Bank of Canada’s future easing policy.

Today's GBP rates

What we think

Quiet day ahead with very little on the Economic Calendar today. The dollar remains on the back foot at the start of the day with treasury yields continuing to sink lower and markets now pricing in a 30% chance of the Fed cutting the base rate three times this year. Risk sentiment remains stable despite the Pentagon reporting that the US airstrikes didn’t destroy core nuclear components below ground. Of course, the White House has dismissed these reports. GBPEUR is attempting a bounce back after recently falling to a two-month low, so we'll likely see EUR buyers taking advantage of the bounce. GBPAUD has also rebounded off one-month lows and is now trading back at April highs.

Read more about the Federal Reserve's interest rate decisions here:

• When is the next Fed interest rate decision?
• When is the next FOMC meeting?

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