Pound (GBP) flat as markets await UK GDP
The pound (GBP) wavered yesterday as a lull in UK economic data left the currency without direction.
Sterling had stabilised following the previous day’s labour market release, with GBP investors hesitant to adjust their positions ahead of the upcoming UK GDP figures due out today.
As expected, the UK economy grew just 0.1% in August, while July’s GDP was revised down from 0% to -0.1%. With British economic growth looking weak, Sterling could struggle today.
Euro (EUR) quiet amid mixed output figures
The euro (EUR) also saw limited movement yesterday amid some mixed results from the Eurozone’s latest industrial production data.
Although output across the bloc fell 1.2% month on month in August, this was better than the expected 1.6% decline. In addition, production rose 1.1% on an annual basis.
The Eurozone’s trade figures for August might impact EUR today. An expected narrowing of the bloc’s trade surplus could weigh on the common currency.
US dollar (USD) ticks lower following Fed comments
The US dollar (USD) softened yesterday as a risk-on mood and dovish Federal Reserve interest rate expectations weighed on the ‘greenback’.
The downside came following comments from Fed Chair Jerome Powell on Tuesday evening, in which he kept the door open to further rate cuts.
Looking ahead, three more Federal Reserve policymakers are due to deliver speeches later this afternoon. Could a broadly dovish consensus drag the US dollar lower?
Canadian dollar (CAD) weakens amid BoC rate cut expectations
The crude-linked Canadian dollar (CAD) stumbled against its stronger rivals yesterday, amid Bank of Canada (BoC) rate cut bets and ongoing weakness in oil.
Canada’s latest business barometer could influence CAD exchange rates today, with another lacklustre reading potentially weighing on the ‘loonie’.
Australian dollar (AUD) declines as unemployment rises
The Australian dollar (AUD) dropped overnight as Australian unemployment unexpectedly jumped from 4.3% to 4.5% in September.
New Zealand dollar (NZD) bounces off multi-year lows
The New Zealand dollar (NZD) initially softened overnight, slipping to multi-year lows against some peers, before bouncing back amid a slightly risk-on market mood.
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