US Dollar (USD) knocked by GDP disappointment
The US Dollar (USD) stumbled yesterday as the latest US GDP figures saw growth in the third quarter revised lower.
The finalised estimate for GDP was revised down from 5.2% to 4.9%. While this was the strongest quarter of growth since the end of 2021, it also reinforced Federal Reserve interest rate cut expectations.
Closing out this week’s session will be the publication of the Fed’s preferred indicator for inflation, the core PCE price index. Will an expected drop in inflation extend the USD selling bias?
Pound (GBP) extends post-inflation selloff
The Pound (GBP) continued to be undermined by Bank of England (BoE) interest rate cut bets yesterday, in the wake of Wednesday’s weaker-than-expected inflation figures.
Also dragging on Sterling was a much sharper-than-expected decline in UK retail sector activity in December, according to the Confederation of British Industry’s (CBI) latest distributive trades index.
Meanwhile, trade in the Pound is mixed this morning, as an impressive rebound in UK retail sales last month, is offset by weaker-than-expected growth figures.
Euro (EUR) wavers amid limited data
The Euro (EUR) traded without clear direction on Thursday amid the absence of any notable Eurozone data.
While the single currency’s negative correlation with the US Dollar offered some support, this was offset by a move away from safe-haven currencies
Eurozone data remains in short supply today, potentially leaving EUR to continue to trade sideways.
Canadian Dollar (CAD) slides as oil price slump offsets upbeat data
The Canadian Dollar (CAD) trended lower on Thursday, with investors seemingly shrugging off Canada’s stronger-than-expected retail sales data amid a slump in oil prices.
Coming up, the ‘Loonie’ may face additional headwinds later this afternoon if Canada latest GDP figures report domestic growth slowed in November.
Australian Dollar (AUD) retreats from multi-month highs
The Australian Dollar (AUD) struck a five-month high against the US Dollar overnight. Before giving ground in the second half of the Asian trading session as market risk appetite waned.
New Zealand Dollar (NZD) fluctuates amid mixed market mood
Movement in the New Zealand Dollar (NZD) mirrored that of the ‘Aussie’ last night. With the ‘Kiwi’ initially rallying in risk-on trade, before quickly relinquishing some of its gains as the mood soured.