Pound (GBP) drops following BoE decision
The pound (GBP) slid yesterday following the Bank of England’s (BoE) final interest rate decision of 2024.
Although the bank left its policy unchanged, as expected, three policymakers voted to cut rates. In addition, the bank warned of stagflation risks and lowered its growth forecast.
Turning to today’s session, Sterling is flat this morning following the release of the latest UK retail sales figures. While sales growth rebounded in November, they still fell short of market expectations.
Euro (EUR) pressured by USD strength
The euro (EUR) was subdued yesterday as ongoing strength in the US dollar (USD) kept pressure on the common currency.
A better-than-forecast improvement in Germany’s consumer confidence index failed to lift EUR, as consumers in the Eurozone’s largest economy remain deeply pessimistic.
The euro is trading with modest gains so far this morning as Germany’s latest producer price index unexpectedly accelerated.
US dollar (USD) trims post-Fed gains
After striking multi-year highs in the wake of the Federal Reserve decision, the US dollar then trimmed its gains yesterday as investors sought to cash in on the currency’s strength.
However, an upward revision to US third-quarter GDP kept the ‘greenback’ afloat, with the American economy expanding 3.1%.
USD exchange rates could build on the week’s gains this afternoon, as the latest core PCE price index is forecast to show an uptick in inflation.
Canadian dollar (CAD) rises as wage growth accelerates
The Canadian dollar (CAD) firmed yesterday thanks to an unexpected acceleration in Canadian wage growth.
Today, Canadian retail sales are the focus. Could a rise in sales growth boost CAD?
Australian dollar (AUD) pressured by risk-off flows
The Australian dollar (AUD) struggled to attract support during today’s Asian trading session, as a broadly cautious market mood limited the appeal of the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) subdued amid risk aversion
The New Zealand dollar (NZD) was also muted in overnight trade as investors favoured safe-haven assets.
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