Pound (GBP) buoyed as Healey hints at budget business support
The pound (GBP) attracted modest support on Thursday, after Chancellor John Healey signalled that he will seek to 'back business' in his inaugural budget next week.
While Healey was vague on details, he acknowledged the challenges faced by companies in recent years and said that the government wants to encourage entrepreneurs.
Meanwhile, data showing a larger-than-expected slump in UK retail sales last month is already pressuring the pound this morning, with Sterling vulnerable to further losses if October's services PMI also disappoints.
Euro (EUR) slides as French bond yields rise above 5%
The euro (EUR) continued to weaken on Thursday after French bond yields climbed to a fresh 24-year high.
The rise in borrowing costs places even more pressure on the Eurozone's second-largest economy, with analysts starting to downgrade their growth expectations for 2026 and 2027.
Turning to today's session, the euro may find some respite if the Eurozone's own PMIs point to resilience in the bloc's private sector.
US dollar (USD) bolstered by alarming spike in oil prices
The US dollar (USD) caught fresh bids yesterday as soaring oil prices unsettled markets and stoked demand for the safe-haven currency.
These gains were then reinforced by an unexpected fall in initial jobless claims last week.
While not as influential as the ISM releases, the latest S&P PMIs could underpin the US dollar at the end of this week's session if they report that the US private sector continues to expand at a healthy pace this month.
Canadian dollar (CAD) underpinned by oil price surge
The Canadian dollar (CAD) appreciated on Thursday as the latest jump in oil prices reflected positively on the commodity-linked currency.
However, the 'loonie' may struggle to consolidate these gains today, as Canada's latest retail sales figures are expected to report a sharp slowdown in consumer spending last month.
Australian dollar (AUD) subdued in cautious trade
The Australian dollar (AUD) wavered overnight on Thursday as demand for the risk-sensitive 'Aussie' was undermined by an increasingly cautious market mood.
New Zealand dollar (NZD) buoyed by RBNZ rate hike bets
The New Zealand dollar (NZD) trended broadly higher in overnight trade as investors continue to price in a rate hike from the Reserve Bank of New Zealand (RBNZ) next week, despite yesterday's underwhelming inflation.
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