Pound (GBP) slides despite impressive GDP figures
The pound (GBP) fell yesterday afternoon amid speculation on whether Prime Minister Keir Starmer might step down following the resignation of Health Secretary Wes Streeting.
This overshadowed the release of surprisingly resilient UK GDP figures, which reported the UK economy grew 0.6% in the first quarter of 2026, despite the pressures posed by the Middle East crisis.
Looking ahead, it seems safe to assume that a continued focus on Labour's leadership crisis may continue to keep a lid on GBP demand today.
Euro (EUR) muted in quiet trade
The euro (EUR) traded within a narrow range on Thursday as a lack of fresh Eurozone economic data left EUR investors without a clear catalyst for movement.
Wider investor sentiment also offered limited impetus, amid yesterday’s uncertain market mood.
Eurozone economic releases remain in limited supply today, which may leave the euro directionless again.
US dollar (USD) gains tempered by underwhelming data
The US dollar (USD) firmed yesterday as investor caution amid US President Donald Trump’s summit with his Chinese counterpart, Xi Jinping, boosted demand for the safe-haven currency.
However, these gains remained very modest in light of data showing that US retail sales growth slowed sharply last month, while jobless claims rose more than forecast in the second week of May.
Trump will conclude his summit with Xi today, with the ‘greenback’ likely to give up ground if there are signals the pair might have discussed Iran and a way to reopen the Strait of Hormuz.
Canadian dollar (CAD) flat as oil prices stall
The Canadian dollar (CAD) was muted through Thursday’s session as a stalling of oil prices limited trading impetus for the commodity-linked currency.
Looking ahead, movement in the ‘loonie’ is likely to remain tied to oil price dynamics today.
Australian dollar (AUD) tumbles as sentiment sours
The Australian dollar (AUD) slumped overnight as a sharp deterioration in market risk appetite weighed heavily on the ‘Aussie’.
New Zealand dollar (NZD) dives amid risk-off trade
The New Zealand dollar (NZD) also fell sharply during last night’s Asian session amid the souring market mood.
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