Pound (GBP) fluctuates as GDP disappoints
The pound (GBP) found fleeting gains yesterday, despite the UK’s latest GDP estimate falling short of expectations.
Growth held at 0.1% in the last quarter of 2025, missing forecasts that it would accelerate to 0.2%, and stoking bets for an imminent interest rate cut from the Bank of England (BoE).
UK data is in short supply today, which could leave Sterling trading without a strong directional bias through the remainder of the week.
Euro (EUR) muted amid lack of data
The euro (EUR) was subdued on Thursday, amid an ongoing lull in Eurozone economic data.
EUR sentiment was also suppressed by concerns about progress in the Ukraine peace process, amid fears that talks next week will remain deadlocked over potential territorial concessions.
The Eurozone will publish its latest GDP estimate later this morning, with confirmation that the bloc’s economy expanded by 0.3% in Q4 potentially underpinning the euro.
US dollar (USD) slips amid waning safe-haven demand
The US dollar (USD) ticked lower against most of its peers yesterday as positive risk flows stifled safe-haven demand.
USD was undermined further by the latest US initial jobless claims after they fell by less than expected in the first week of February.
The focus today will undoubtedly be on the latest US consumer price index. If inflation cooled as forecast in January, it could dampen recent hawkish Federal Reserve rate bets and pull the US dollar lower.
Canadian dollar (CAD) dented by soft oil prices
The Canadian dollar (CAD) ticked lower on Thursday, the appeal of the commodity-linked currency being undermined by a weakening of oil prices.
Expect the ‘loonie’ to remain muted through the end of the week if the decline in crude prices persists through to the weekend.
Australian dollar (AUD) retreats as sentiment sours
The Australian dollar (AUD) stumbled overnight on Thursday as a cautious shift in market sentiment limited demand for the risk-sensitive currency.
New Zealand dollar (NZD) undermined by gloomy mood
The New Zealand dollar (NZD) also slipped in overnight trade amid the downbeat market mood.
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