Pound (GBP) dented by retail slowdown
The pound (GBP) was muted yesterday amid signs that UK consumer spending continues to soften.
The Confederation of British Industry's (CBI) latest distributive trades survey reported that retail order volumes fell to a record low in September amid signs that household sentiment is deteriorating.
In the absence of any notable UK economic releases, a lack of impetus could leave Sterling to trade without direction today.
Euro (EUR) subdued despite improving German business morale
The euro (EUR) looked to attract support on Thursday as Germany's latest IFO survey reported business sentiment climbed to a three-year high in September.
However, demand for the single currency ultimately remained limited as it was pressured by its inverse trade relationship with the US dollar (USD).
The euro could face potential headwinds at the end of this week's session after Germany's consumer confidence figures reported a larger-than-expected drop in household sentiment going into October.
US dollar (USD) extends bullish run
The US dollar continued to appreciate on Thursday, with the US dollar index striking new multi-week highs.
Expectations for a more aggressive pace of monetary tightening from the Federal Reserve remained a key source of support for the 'greenback', with additional gains being underpinned by a surprise fall in new US jobless claims last month.
The publication of the latest US durable goods data could rob the US dollar of some of its recent bullish momentum today, as August's data is expected to report a contraction in new orders. In addition, hopes for a deal to reopen the Strait of Hormuz are pressuring USD.
Canadian dollar (CAD) wobbles on mixed retail sales data
Trade in the Canadian dollar (CAD) was mixed on Thursday as domestic retail sales data reported sales growth was weaker than initially thought in July but showed a stronger-than-expected recovery in August's preliminary figures.
Turning to today's session, the 'loonie' may struggle as oil prices begin to fall on reports of a potential phased deal to reopen the Strait of Hormuz.
Australian dollar (AUD) buoyed by risk-positive trade
The Australian dollar (AUD) trended broadly higher in overnight trade, with the risk-sensitive 'Aussie' benefitting from a more sanguine mood amongst investors.
New Zealand dollar (NZD) muted as RBNZ bets turn dovish
The New Zealand dollar (NZD) was unable to take advantage of the improvement in risk sentiment overnight, as any potential gains were offset by a dovish repricing of Reserve Bank of New Zealand (RBNZ) interest rate bets.
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