Pound (GBP) buoyed by falling borrowing costs
The pound (GBP) edged higher yesterday amid a continued fall in UK government borrowing costs.
UK 10-year gilt yields fell to their lowest levels in over a month as markets continued to crunch the numbers after Chancellor John Healey unveiled his first budget on Wednesday.
In the absence of any notable domestic data today, expect Sterling sentiment to remain linked to any further movement in the UK bond market.
Euro (EUR) subdued following ECB rate decision
The euro (EUR) was muted on Thursday as the European Central Bank (ECB) opted to leave interest rates on hold following its latest policy meeting.
While the decision came as little surprise to investors, Christine Lagarde's announcement that she would be stepping down as President of the ECB in February appeared to exert some pressure on EUR sentiment.
Looking ahead, the euro could face fresh headwinds at the end of this week's session as the Eurozone's latest GDP figures are forecast to show economic growth slowed sharply in the third quarter.
US dollar (USD) underpinned by strong GDP data
The US dollar (USD) tracked higher through yesterday's session, aided by positive US growth figures.
Preliminary figures for the third quarter showed the US economy expanded by 3.4%, with further signs of US economic resilience reinforcing bets that the Federal Reserve will raise interest rates in December.
Turning to today's session, a lull in US data may tie movement in the US dollar to market risk appetite, with a risk-averse mood potentially propping up USD demand.
Canadian dollar (CAD) remains buoyed by BoC rate hike
The Canadian dollar (CAD) drifted higher on Thursday as it continued to be underpinned by the Bank of Canada's (BoC) rate hike earlier in the week.
Coming up, the 'loonie' may struggle today if Canada's month-on-month growth figures report that GDP remained muted in September.
Australian dollar (AUD) fluctuates amid shifting market mood
The Australian dollar (AUD) traded in a wide range overnight, with the risk-sensitive currency relinquishing its initial gains as market sentiment began to sour.
New Zealand dollar (NZD) struggles to sustain recovery
The New Zealand dollar (NZD) also ticked up through Friday's Asian session but struggled to consolidate these gains ahead of the European session amid an easing of risk appetite.
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