Pound (GBP) wobbles amid BoE rate cut speculation
The pound (GBP) wavered on Friday amid fresh Bank of England (BoE) interest rate cut speculation.
Despite comments from BoE Chief Economist Huw Pill on Thursday urging caution on further rate cuts, most GBP investors expect the bank to deliver several more this year.
In the absence of any notable GBP data, the pound may trade with limited direction today. However, with European leaders meeting today ahead of tomorrow’s talks between the US and Russia, hopes for an end to the Russia-Ukraine war could cheer markets and support GBP.
Euro (EUR) firms as GDP revised higher
The euro (EUR) closed last week’s session on a positive note, following the publication of the Eurozone’s latest GDP figures.
The second estimate for GDP in the last quarter of 2024 saw growth revised up from 0% to 0.1%, with the slight improvement helping to somewhat ease recent economic jitters.
Coming up, the Eurozone will publish its latest trade figures later today. Donald Trump's current focus on trade may elevate the impact of the usually mid-tier data, with a large trade surplus potentially drawing the ire of the US President.
US dollar (USD) slides amid Trump tariff relief
The US dollar (USD) ticked lower on Friday. Initial pressure stemmed from relief that Trump didn’t immediately impose new reciprocal tariffs as he outlined his latest trade policies on Thursday.
These losses were then extended after the latest US retail sales print, which reported a 0.9% slump in sales growth last month, versus the 0.1% contraction forecast.
US markets are closed for President’s Day today, which, barring any other major headlines pertaining to Trump’s tariff agenda, could limit trade volumes in the US dollar.
Canadian dollar (CAD) slides in tandem with USD
The Canadian dollar (CAD) stumbled at the end of last week, with the currency being pressured by its positive correlation with the US dollar.
Looking ahead, movement in the ‘loonie’ may be driven by oil price dynamics at the start of this week, potentially leading to losses if prices continue to soften.
Australian dollar (AUD) firms on Chinese economy hopes
The Australian dollar (AUD) ticked higher overnight as Chinese President Xi Jinping held a meeting with business leaders, in an indication that the Chinese government will work more closely with the private sector to shore up growth.
New Zealand dollar (NZD) wobbles amid lukewarm risk appetite
The New Zealand dollar (NZD) wavered overnight as a lack of data and mixed market mood confined the ‘kiwi’ to a narrow range.
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