Pound Struggles as UK Economy Stagnates

Pound (GBP) Subdued following UK GDP

The Pound (GBP) slipped against its stronger peers on Friday, despite UK GDP printing above expectations at 0%, versus -0.1%, in the third quarter.

Although the British economy avoided a downturn in the three months to September, the poor growth outlook put pressure on the Pound nonetheless.

Turning to today, Sterling could be quiet ahead of tomorrow’s wage data and Wednesday’s consumer price index. We may be in for notable volatility as the week progresses.

Euro (EUR) Firms amid Risk-Off Mood

The Euro (EUR) managed to move higher against some of its riskier peers on Friday, thanks to EUR’s status as a safer currency.

However, a lack of Eurozone economic data capped the single currency’s upside potential.

Looking forward, Eurozone data remains thin on the ground today, which could mean EUR continues to trade on risk appetite.

US Dollar (USD) Remains Strong despite Falling Consumer Morale

The US Dollar (USD) trended broadly higher on Friday, with the currency still enjoying tailwinds from Federal Reserve Chair Jerome Powell’s hawkish speech on Thursday evening.

Mixed data in the afternoon seemed to have little effect on USD. Although consumer confidence dropped, a rise in inflation expectations kept Fed rate hike bets alive.

With no US economic releases due out today, the safe-haven ‘Greenback’ could trade on market risk dynamics. A speech from Fed policymaker Lisa Cook could also affect USD this afternoon.

Canadian Dollar (CAD) Mixed after Week of Falling Oil Prices

The crude-linked Canadian Dollar (CAD) traded in a wide range on Friday. While oil prices moved higher, supporting CAD, they remained sharply lower on the week.

Oil prices have slipped lower this morning. If they continue to fall, CAD could struggle today.

Australian Dollar (AUD) Flat amid Absence of Data

The Australian Dollar (AUD) moved mostly sideways last night as a lack of economic data left the ‘Aussie’ trading without a clear direction.

New Zealand Dollar (NZD) Flatlines during Quiet Session

The New Zealand Dollar (NZD) was also rangebound during the overnight session amid an absence of data and a quiet market mood.

Samuel Birnie

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