Pound (GBP) undermined by dovish BoE bets
The pound (GBP) struggled to attract support yesterday as Sterling sentiment was weighed down by Bank of England (BoE) interest rate cut speculation.
Recent signs point to an increasingly sluggish UK economy, stoking bets the BoE will deliver multiple rate cuts in 2026.
Turning to today’s session, Sterling sentiment is likely to remain subdued in response to data showing a shock contraction in UK GDP in October.
Euro (EUR) supported by USD weakness
The euro (EUR) ticked broadly higher on Thursday, as the single currency benefitted from its strong negative correlation with the US dollar (USD).
This was compounded by the expected policy divergence between the European Central Bank (ECB) and its US counterpart next year.
In the absence of any market-moving Eurozone data, the euro is likely to be driven by wider market trends at the end of this week’s session.
US dollar (USD) slides following Fed rate cut
The US dollar struck new multi-month lows yesterday, as it remained under pressure from the Federal Reserve’s surprisingly dovish interest rate cut on Wednesday.
Extending those losses was a sharp increase in jobless claims last week, as new claims jumped to a three-month high of 236,000.
US economic data is in short supply today, potentially leaving the US dollar vulnerable to more dovish Fed bets.
Canadian dollar (CAD) supported by rising exports
The Canadian dollar (CAD) edged higher on Thursday as data showing a surprise uptick in Canadian exports in September helped to offset pressures stemming from falling oil prices.
With CAD data in short supply today, the ‘loonie’ could find itself vulnerable if oil prices continue to soften.
Australian dollar (AUD) wavers amid mixed mood
The Australian dollar (AUD) traded sideways overnight on Thursday as a cautious market mood sapped demand for the risk-sensitive currency.
New Zealand dollar (NZD) flat in muted trade
The New Zealand dollar (NZD) was also trapped in a narrow range in overnight trade amid the subdued market mood.
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