Makro

In a statement published on Friday, Federal Reserve Bank of Cleveland President Beth Hammack explained her decision to dissent against the Fed keeping an easing bias in the policy statement, saying that a "clear easing bias" is no longer appropriate given the current outlook.

Bank of England (BoE) Chief Economist Huw Pill said on Friday that a tightening in financial conditions seem as a reasonable response to the inflation risk from the US-Iran war, per Reuters.

European Central Bank (ECB) governing council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, said in his blog ⁠on the Irish central bank's website on Friday that he will be vigilant to the indirect effects of higher energy prices on production, ​transportation, and services, R

Rabobank’s RaboResearch notes the Bank of England kept rates unchanged while striking an “alert but careful” tone, with Governor Bailey describing an “active hold” that balances persistent inflation risks against softer activity and employment.

The Pound Sterling (GBP) ticks lower against its major currency peers, trading marginally down to near 1.3590 against the US Dollar (USD) during the European trading session on Friday.

Chris Turner at ING notes that recent European Central Bank communication had limited impact on Euro rates and the Euro, with markets still pricing a June rate hike near 90%.

The Australian Dollar (AUD) trades lower against its major currency peers during the European trading session on Friday. The Australian currency is slightly under pressure as investors turn cautious ahead of the Reserve Bank of Australia’s (RBA) monetary policy announcement on Tuesday.

European Central Bank (ECB) Governing Council member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Friday that the baseline scenario already entails a more restrictive monetary policy.

European Central Bank (ECB) Governing Council member Madis Müller said on Friday that it is increasingly likely the ECB will need to raise interest rates.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, regains some positive traction on Friday and reverses a part of the previous day's sharp retracement slide from a three-week high – level just above the 99.00 mark.

The GBP/USD pair trades firmly near an over two-month high of around 1.3610 during the European trading session on Friday. The Cable outperforms as the Pound Sterling (GBP) reflects strength, following the Bank of England’s (BoE) monetary policy announcement on Thursday.

The EUR/GBP cross holds steady around 0.8625 during the early European session on Friday.