Pound (GBP) Trips on Slowdown in UK GDP Growth
The Pound (GBP) softened against most of its major rivals yesterday after UK GDP growth slowed more than expected in the third quarter of this year.
The UK is lagging behind other major economies in terms of recovering to pre-pandemic levels. In addition, forecasts for coming quarters suggest growth will continue to slow.
A speech from Bank of England (BoE) policymaker Jonathan Haskel this afternoon is unlikely to lift Sterling, as Haskel is one of the most dovish members of the bank’s Monetary Policy Committee (MPC).
Euro (EUR) Wavers in Absence of Data
The Euro (EUR) was mixed yesterday amid a lack of data. It managed to edge up against some of its weaker peers, despite being under pressure from its negative corelation to a strong US Dollar (USD), although gains were capped.
The Euro was also subdued amid growing tensions with Belarus, after Minsk threatened to cut gas supplies to Europe if the EU imposes new sanctions.
Looking ahead, economists expect industrial production in the Eurozone to have contracted again in September, which could weigh on the single currency.
US Dollar (USD) Muted during Veterans Day
The US Dollar (USD) was fairly quiet through Thursday’s session, as US markets were partially closed for the Veterans Day federal holiday.
Despite this, USD was able to inch higher against many of its peers, supported by tailwinds from Wednesday’s strong CPI.
Today’s session brings the latest job openings report as well as the consumer sentiment survey from the University of Michigan. With both releases expected to be positive, USD could climb.
Canadian Dollar (CAD) Slips as US Ponders Tapping Oil Reserves
The Canadian Dollar (CAD) fell sharply in yesterday’s session as US President Biden considers tapping the country’s oil reserves to cool domestic petrol prices.
The price of WTI crude has been trending lower this week, and any further downward movement could weigh on the commodity-linked Canadian Dollar today.
Australian Dollar (AUD) Claws Back Losses as Risk Appetite Improves
The Australian Dollar (AUD) initially dipped overnight but managed to regain lost ground amid a modest improvement in market mood.
New Zealand Dollar (NZD) Fluctuates on Shifting Market Sentiment
Likewise, the New Zealand Dollar (NZD) dropped at the start of the overnight session but bounced off lows as risk appetite recovered somewhat.