Pound (GBP) retreats on lacklustre UK GDP
The pound (GBP) closed last week’s session on a sour note, as the UK's latest GDP figures fell short of forecasts.
October’s month-on-month figures reported a shock 0.1% contraction in growth, stoking stagflation concerns and ‘nailing on’ an interest rate cut from the Bank of England (BoE) this week.
Turning to the start of this week, Sterling may remain subdued ahead of some high-impact UK economic releases later in the week.
Euro (EUR) flat amid Bulgaria Eurozone uncertainty
The euro (EUR) was left rangebound on Friday as the sudden resignation of Bulgaria’s government raised questions about the country’s entry into the Eurozone next month.
The resignation of Prime Minister Rosen Zhelyazkov comes as Bulgaria experiences a wave of street protests and is likely to see the newest member of the single currency project face its eighth election since 2021.
Eurozone industrial production figures may offer some direction to the euro at the start of this week, with an expected slowdown in factory output in October potentially sapping EUR demand.
US dollar (USD) rebounds from recent lows
The US dollar (USD) traded with modest gains on Friday, attracting support from price-conscious investors after sliding to fresh multi-month lows on Thursday.
However, the upside in USD ultimately remained capped in the face of dovish US rate cut bets following the Federal Reserve’s interest rate decision earlier in the week.
The release of December’s Empire State manufacturing index could trigger a fresh drop in the US dollar later this afternoon, as economists forecast factory activity in New York State will have slowed this month.
Canadian dollar (CAD) steady despite softening oil prices
The Canadian dollar (CAD) held its ground at the end of last week’s session, despite expectations for a global oil surplus next year triggering another drop in crude prices.
Canada’s latest consumer price index will be in focus for CAD investors at the start of this week, with an uptick in inflation last month potentially helping to lift the ‘loonie’.
Australian dollar (AUD) dented by soft Chinese data
The Australian dollar (AUD) drifted lower through Monday’s Asian trading session as it was undermined by surprisingly weak Chinese industrial production and retail sales figures.
New Zealand dollar (NZD) slips in risk-off trade
The New Zealand dollar (NZD) also weakened overnight as the lacklustre Chinese data sapped market risk appetite.
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