Pound (GBP) slips as investors book profits
The pound (GBP) retreated against most of its peers on Thursday, with the currency being undermined by a bout of profit-taking after climbing to multi-month highs earlier in the week.
GBP investors also appeared unimpressed by the UK's latest GDP data, despite May's month-on-month figures showing the economy returned to growth following April's contraction.
UK data is in short supply today, likely leaving domestic politics to drive Sterling sentiment. Any further hints or even confirmation that incoming Prime Minister Andy Burnham will appoint Shabana Mahmood as Chancellor could trigger a fresh bump in the pound.
Euro (EUR) muted in quiet trade
The euro (EUR) traded without strong directional bias yesterday amid a lull in Eurozone economic releases.
While some investors sought to short the single currency amid concerns over rising gas prices, this had little discernible impact on EUR.
The Eurozone will publish its latest consumer price index today, with the euro potentially facing headwinds if June's finalised figures confirm a sharp deceleration of inflation.
US dollar (USD) buoyed by geopolitical uncertainty
The US dollar (USD) traded with modest support through yesterday's session, with demand for the safe-haven currency being underpinned as hostilities in the Middle East intensified.
However, these gains were tempered by the latest US retail sales figures, which pointed to a notable slowdown in consumer spending at the end of the second quarter.
Turning to today, demand for the US dollar is rising again as a global tech stock rout spooks investors, with the 'greenback' potentially extending these gains later this afternoon if data shows US consumer sentiment improved this month.
Canadian dollar (CAD) bolstered by rising oil prices
The Canadian dollar (CAD) ticked higher on Thursday as rising oil prices reflected positively on the commodity-sensitive currency.
Expect movement in the 'loonie' to remain tied to oil price dynamics through today's session, with a continued appreciation of crude potentially extending the currency's upward momentum into the weekend.
Australian dollar (AUD) slips amid stock market jitters
The Australian dollar (AUD) trended lower overnight on Thursday as fresh concerns over an AI bubble weighed on market risk appetite.
New Zealand dollar (NZD) pressured by risk-off trade
The New Zealand dollar (NZD) also softened in overnight trade amid the cautious market mood.
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