Pound (GBP) uncertain amid mixed GDP figures
The pound (GBP) traded erratically yesterday as mixed GDP figures left the currency lacking a clear direction.
While GDP in the first quarter of 2026 was confirmed at 0.6% – placing the UK at the top of the G7 for that period – growth was revised lower at the end of 2025. Additionally, April’s GDP data showed a 0.1% contraction.
GBP investors will be keeping an eye on Bank of England (BoE) Governor Andrew Bailey today as he delivers a speech. If he maintains his cautious tone, Sterling could stumble.
Euro (EUR) choppy following German data
The euro (EUR) also fluctuated yesterday, with mixed German data and movement in the US dollar (USD) infusing EUR with volatility.
While German retail sales and unemployment data surprised to the upside, the country’s latest consumer price index revealed that inflation cooled by 0.3 percentage points in June.
The Eurozone’s latest CPI is the focus for EUR investors today. If inflation eased as expected last month, the common currency could stumble.
US dollar (USD) retreats amid weak consumer confidence
The US dollar started yesterday’s session on the front foot following a cautious mood overnight, but soon began to waver as sentiment improved.
The ‘greenback’ then fell in the afternoon after the latest CB consumer confidence index showed that household morale was weaker than expected in June.
Today, two US data releases and a speech from Federal Reserve Chair Kevin Warsh could lift USD. The releases are expected to show that jobs growth and manufacturing activity remained strong in June, while Warsh may hint at the need for tighter policy.
Canadian dollar (CAD) unsure despite upbeat GDP
The Canadian dollar (CAD) traded in a mixed capacity yesterday, as stronger-than-forecast GDP figures helped to offset CAD’s positive correlation with the sliding US dollar.
Looking forward, Bank of Canada (BoC) Governor Tiff Macklem is due to speak today. If he signals that the bank may consider raising interest rates, CAD could firm.
Australian dollar (AUD) drops amid weak data and risk-off mood
The Australian dollar (AUD) fell sharply overnight as a cautious mood and a far weaker-than-forecast Ai Group industry index weighed on the ‘Aussie’.
New Zealand dollar (NZD) firms amid RBNZ rate hike bets
The New Zealand dollar (NZD) edged higher overnight after the International Monetary Fund (IMF) said the Reserve Bank of New Zealand (RBNZ) should raise interest rates soon.
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