The GBP/USD pair remains steady at 1.3200, with traders adopting a cautious approach ahead of key central bank events. US Retail Sales data is due today, but market sentiment suggests that this data may not create significant volatility in currency rates. Forecasts indicate that month-on-month (MoM) US Retail Sales growth in August is expected to ease to 0.2% from July's 1.0%, while core MoM Retail Sales are predicted to reduce to 0.3% from 0.4%. On the UK front, Consumer Price Index inflation figures are due early Wednesday, but they are not anticipated to trigger substantial market reactions. Investors are positioning themselves cautiously, awaiting the much-anticipated two-day Federal Open Market Committee meeting starting this Tuesday and the Bank of England policy update on Thursday.

EUR/GBP Steady as Markets Await UK and Eurozone Inflation Data

The EUR/GBP trades flat near 0.8420, following the European Central Bank's recent rate cut and its slower-than-expected growth forecasts. Today, Germany will publish its latest ZEW economic sentiment index, which could influence the pair. With a week of crucial financial data ahead, the currency pair may struggle to stabilise amid the prevailing risk-on mood. The UK Consumer Price Index inflation data and the Eurozone Harmonised Index of Consumer Prices will be released on Wednesday. These figures may offer some insight into inflation trends, directly affecting the next monetary policy moves from both the ECB and BoE.

EUR/USD Fluctuates Due to Hawkish ECB Comments

The EUR/USD climbed to a 10-day high, surpassing the 1.1100 mark, as selling pressure weighed on the US dollar. The euro was bolstered by hawkish comments from the European Central Bank. However, key economic data and the latest ZEW economic sentiment index could further shape market sentiment for the euro. The USD may face additional pressure due to softer-than-expected US retail sales figures. The central bank policies of both the ECB and the Federal Reserve will be key drivers of EUR/USD movement in the coming sessions.

AUD/USD Gains Momentum Ahead of US Retail Sales Release

The AUD/USD pair is gaining momentum ahead of the Federal Open Market Committee meeting on Wednesday and the release of the US Retail Sales data. On the Australian front, the August employment data, due on Thursday, could drive movement in the Australian dollar alongside the Reserve Bank of Australia's hawkish outlook.

USD/CAD Rebounds as Markets Anticipate BoC Rate Cuts

The USD/CAD pair rebounds around 1.3600 as the market anticipates further interest rate cuts by the Bank of Canada. Key economic data for both currencies—Canadian Consumer Price Index and US Retail Sales for August—are due later today and could provide further support for the pair. Market sentiment surrounding the US Federal Reserve's interest rate decision could exert downward pressure on the US dollar, limiting gains for the USD/CAD pair. However, stronger-than-expected Canadian inflation figures could prompt the Canadian central bank to reconsider the pace of its rate-cutting cycle, offering potential support to the Canadian dollar.

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