Pound (GBP) slips as UK enters recession
The Pound (GBP) fell yesterday after the UK’s fourth-quarter GDP growth rate contracted more than forecast, confirming that the British economy fell into a recession last year.
With high interest rates and the cost-of-living crisis finally triggering a downturn, markets raised their bets on a coming rate cut from the Bank of England (BoE).
UK retail sales surprised to the upside this morning, with January’s figures reporting a massive 3.4% expansion in sales growth. Will this be enough to help reverse some of the Pound’s recent losses?
Euro (EUR) firms despite gloomy growth forecast
The European Commission downgraded its Eurozone growth and inflation forecasts for 2024 yesterday, which led to muted trade in the Euro (EUR) at the start of the session.
However, EUR was able to climb in the afternoon thanks to its strong negative correlation with a weakening US Dollar (USD).
This morning, EUR investors may look to a speech from European Central Bank (ECB) policymaker Isabel Schnabel for fresh impetus. Could a cautious tone from the influential rate-setter see the single currency slip?
US Dollar (USD) slides as retail sales shrink
The US Dollar declined on Thursday following dire US retail sales data, as domestic sales shrank by 0.8% in January, versus forecasts of a 0.1% contraction.
In addition, a cautiously upbeat market mood dampened demand for the safe-haven ‘Greenback’.
Turning to today, the latest US producer price index and consumer sentiment report could impact USD. Could modest upticks in both be enough to lift the US Dollar?
Canadian Dollar (CAD) buoyed by strong oil prices
After an initial slip, the commodity-tied Canadian Dollar (CAD) recouped its losses yesterday and gained ground against its weaker peers thanks to a rise in oil prices.
With Canadian economic data still thin on the ground today, crude prices could continue to drive movement in the ‘Loonie’.
Australian Dollar (AUD) pressured by falling commodity prices
The Australian Dollar (AUD) was placed on the defensive overnight on Thursday as falling coal and iron ore prices took their toll on the ‘Aussie’.
New Zealand Dollar (NZD) stumbles in cautious trade
The New Zealand Dollar (NZD) trended lower in overnight trade as a downbeat market mood saw investors shy away from the risk-sensitive ‘Kiwi’.