Pound (GBP) rallies as UK GDP revised higher
The pound (GBP) enjoyed broad support through yesterday's session, following an upward revision to UK GDP in the second quarter.
Growth was revised up from 0.4% to 0.5%, marking the UK as the fastest-growing G7 country in the first half of the year and strengthening bets that the Bank of England (BoE) will raise interest rates in November.
A speech by one of the BoE's most hawkish policymakers, Catherine Mann, has the potential to extend Sterling's gains today if she signals support for tightening monetary policy sooner rather than later.
Euro (EUR) wobbles on mixed German data
Trade in the euro (EUR) was mixed on Wednesday, following the release of uneven German economic data.
This saw weaker-than-expected retail sales data temper the potential gains stemming from Germany's above-forecast inflation print in September.
Coming up, a speech by European Central Bank (ECB) President Christine Lagarde could pile fresh pressure on the euro today if she maintains the dovish tone she struck in remarks made earlier in the week.
US dollar (USD) suffers as Fed rate hike bets slump
The US dollar (USD) faced notable selling pressure yesterday, following a dovish repricing of Federal Reserve interest rate expectations.
Odds for another rate hike in October fell to around 37% from around 70% earlier in the week as the Fed's preferred inflation indicator printed below expectations in August.
Turning to today's session, the US dollar is already on the road to recovery, with further gains likely if the latest ISM manufacturing PMI reports that the pace of growth in the US factory sector continued to accelerate last month.
Canadian dollar (CAD) undermined by softer oil prices
The commodity-linked Canadian dollar (CAD) was subdued through Wednesday's session as oil prices held below $100 per barrel.
Oil price dynamics will likely continue to dictate the direction of the 'loonie' today, potentially leading to renewed losses if we see a fresh move lower in the global Brent benchmark.
Australian dollar (AUD) steadies as exports rebound
The Australian dollar (AUD) stabilised in overnight trade after Australia's latest trade data reported a sizable rebound in export growth in August.
New Zealand dollar (NZD) pressured by risk-off flows
The New Zealand dollar (NZD) drifted lower during Thursday's Asian session as a cautious market mood limited demand for the risk-sensitive 'kiwi'.
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