Pound (GBP) weakens despite positive GDP data
The pound (GBP) was pressured through yesterday’s session, despite UK GDP outpacing forecasts in November.
While a 0.3% expansion helped weaken the case for another Bank of England (BoE) interest rate cut next month, analysts warned it was unlikely to be enough to prevent growth from stalling in the last quarter of 2025.
UK economic data is in short supply today, likely leaving movement in the pound to be dictated by wider market trends.
Euro (EUR) flat on mixed German GDP print
The euro (EUR) was left rangebound on Thursday, following the publication of Germany’s latest GDP figures.
While the figures for 2025 reported the Eurozone’s largest economy returned to growth for the first time since 2022, they also saw growth in 2024 revised down from -0.2% to -0.5%.
Turning to today, with Germany’s finalised inflation figures for December confirming a rapid cooling of price pressures, the euro may struggle to attract support as we head into the weekend.
US dollar (USD) climbs on positive data
The US dollar (USD) enjoyed broad support yesterday as US investors cheered a surprise fall in US jobless claims last week.
Unemployment claims fell from 207,000 to 198,000, reinforcing bets the Federal Reserve may wait until June before delivering its next interest rate cut.
Expect the US dollar to remain supported through today’s session if risk sentiment continues to deteriorate and US industrial production remains positive.
Canadian dollar (CAD) retreats as oil prices tumble
The Canadian dollar (CAD) faced headwinds on Thursday as a sharp drop in oil prices weakened the appeal of the commodity-linked currency.
If oil prices remain in freefall, the ‘loonie’ is likely to remain on the defensive through the remainder of the week.
Australian dollar (AUD) sidelined by RBA uncertainty
The Australian dollar (AUD) wavered overnight on Thursday, as a slight weakening of Reserve Bank of Australia (RBA) rate hike bets curtailed the currency’s previous momentum.
New Zealand dollar (NZD) buoyed by positive risk flows
The New Zealand dollar (NZD) ticked higher in overnight trade, supported by positive risk flows.
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