Pound (GBP) slides despite robust GDP
The pound (GBP) trended broadly lower yesterday as the preliminary estimate of GDP growth in the second quarter failed to spark much enthusiasm among GBP investors.
While the data showed the UK economy grew at a brisk pace through the first half of 2026, markets weren’t convinced that this growth will persist through the second half of the year.
UK economic releases are in short supply today, likely leaving the pound to trade without directional bias through the remainder of the week.
Euro (EUR) buoyed by positive industrial data
The euro (EUR) ticked higher on Thursday, as the Eurozone’s latest industrial production figures surprised to the upside.
A softening of gas prices then offered additional support to the single currency through the European session.
Barring a revision to the Eurozone’s latest estimate of GDP growth in Q2, the focus for EUR investors today will be on the bloc’s quarterly employment data, where a positive reading could help to underpin the single currency.
US dollar (USD) gains tempered by soft PPI print
The US dollar (USD) appreciated against the majority of its peers yesterday, as geopolitical uncertainty continued to stoke safe-haven demand.
However, these gains were ultimately capped amid another sign that US inflationary pressures are easing, as the latest US producer price index printed below forecast last month.
Upcoming data may prove more punishing for the US dollar, amid forecasts for a modest slowdown in US retail sales and deterioration in consumer sentiment.
Canadian dollar (CAD) falters as oil prices retreat
The commodity-linked Canadian dollar (CAD) was subdued on Thursday as oil prices fell.
Expect the ‘loonie’ to remain sensitive to oil price dynamics through to the end of the session.
Australian dollar (AUD) buoyed by risk-on flows
The Australian dollar (AUD) traded with modest support overnight on Thursday, amid an uptick in market risk appetite.
New Zealand dollar (NZD) firms despite manufacturing slowdown
The New Zealand dollar (NZD) rallied in overnight trade, as an improving market mood offset a greater-than-expected moderation of NZ manufacturing activity last month.
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