Pound (GBP) dented by slowing growth
The pound (GBP) came under renewed pressure on Thursday, with GBP/EUR hitting a 30-month low, as the UK’s latest GDP figures fell short of expectations.
The UK economy grew just 0.1% in the third quarter, boosting bets the Bank of England (BoE) will cut interest rates in December and placing more pressure on Chancellor Rachel Reeves ahead of her autumn budget.
UK data is in short supply today, but Sterling could be vulnerable to further losses linked to fiscal and political jitters.
Euro (EUR) firms on softer USD
The euro (EUR) ticked higher on Thursday, drawing support from its negative correlation with the US dollar (USD).
However, these gains remained limited as the Eurozone’s latest industrial production figures fell short of expectations.
The European Commission is set to publish its latest economic forecasts later today. Will an upbeat outlook on growth help to extend the upside in the euro?
US dollar (USD) slips in risk-positive trade
The US dollar trended broadly lower through yesterday’s session as improving risk appetite sapped demand for the safe-haven currency.
The risk rally came as US President Donald Trump signed a funding bill to end the longest government shutdown on record.
Looking ahead, movement in the US dollar may be limited today as USD investors brace for a flood of US economic releases to be published in the coming days.
Canadian dollar (CAD) pressured by USD weakness
The Canadian dollar (CAD) was subdued on Thursday, as the ‘loonie’ was undermined by its positive correlation with the US dollar.
Looking ahead, CAD exchange rates may bounce back at the end of the week if oil prices continue to accelerate into the weekend.
Australian dollar (AUD) fluctuates following Chinese data
Trade in the Australian dollar (AUD) was mixed overnight on Thursday as uneven Chinese data caused market risk appetite to fluctuate.
New Zealand dollar (NZD) bolstered by upbeat PMI
The New Zealand dollar (NZD) strengthened in overnight trade, supported by a stronger-than-expected manufacturing PMI.
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