Today’s Exchange Rate News: Pound Tumbles as UK GDP Prints Below Expectations

Pound (GBP) Stumbles as UK GDP Underwhelms

The Pound (GBP) retreated through yesterday’s session as the UK’s preliminary GDP estimate underwhelmed, with a 15.5% expansion in the third quarter against forecasts for a 15.8% jump.

While this was still a record jump in quarterly growth, it still leaves the UK economy 8.2% smaller than before the coronavirus pandemic, and with another contraction likely in Q4, this was not enough to cheer markets.

Looking ahead, GBP investors will be looking for any update on the state of Brexit trade talks as we go into the weekend, while a speech by Bank of England (BoE) Governor Andrew Bailey could also provide fresh impetus for trade.

 

Euro (EUR) Firms despite Coronavirus Concerns

The Euro (EUR) trended higher on Thursday, recouping some of its previous losses as coronavirus vaccine hopes helped to offset alarming coronavirus statistics from across Europe.

However tempering the Euro’s gains was some disappointing Eurozone data as industrial production in the bloc unexpectedly contracted in September.

Coming up today, the publication of the Eurozone’s latest GDP figures look to be the focus for EUR investors. Will growth be revised down from the previous release after much of September’s data missed expectations?

 

US Dollar (USD) Buoyed in Downbeat Trade

The US Dollar (USD) struck higher during yesterday’s trading session as market sentiment remained suppressed by coronavirus concerns and US political uncertainty.

However, the appeal of the US Dollar began to sour later in the day, after weaker-than-expected domestic inflation drove US treasury yields lower.

Turning to today’s session, the US Dollar is likely to remain reasonably well supported as record jumps in coronavirus cases across the US and Europe continue to weigh on market sentiment.

 

Canadian Dollar (CAD) Slips as Oil Rally Runs Out of Momentum

The Canadian Dollar (CAD) was left on the defensive on Thursday as the recent rally in crude prices began to run out of steam, denting the appeal of the oil-sensitive ‘Loonie’.

 

Australian Dollar (AUD) Slips in Risk-Off Trade                 

The Australian Dollar (AUD) was placed on the defensive overnight on Thursday, with investors shunning the risk-sensitive ‘Aussie’ as they were spooked by the continued surge of global coronavirus infections.

 

New Zealand Dollar (NZD) Undermined by Dovish Outlook from RBNZ’s Orr

The New Zealand Dollar (NZD) tumbled in overnight trade, with the ‘Kiwi’ coming under significant selling pressure following comments from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr, who expressed doubts over the pace of New Zealand’s economic recovery.

Matthew Andrews

Contact Matthew Andrews


Related