GBP – Sterling rose slightly on Monday but remained within recent ranges as analysts said concerns about economic growth and inflation limited its gains from expectations that the Bank of England will raise rates.
Reports from Societe Generale noted that their analysts believe “the FX market is going to blindly buy sterling on rate hikes that are down to supply-side inflationary pressures (Brexit having made sure the UK feels these particularly sharply) against the backdrop of a dismal run of falling monthly retail sales figures.”
CAD – The Canadian dollar weakened against its US counterpart on Monday, as oil gave back its earlier gains, and investors weighed the potential for the Bank of Canada to push against recent moves by the market to price in multiple rate hikes next year.