Pound (GBP) fluctuates following UK GDP
The pound (GBP) traded in a wide range on Friday following mixed UK GDP results.
Although January’s GDP was revised up from 0.2% to 0.3%, UK economic growth slowed to 0.1% in February. This raised concerns about the fragility of the British economy.
Looking ahead, Bank of England (BoE) Deputy Governor Sarah Breeden is due to speak this afternoon. Any hints about the bank’s policy plans could impact the pound.
Euro (EUR) subdued in wake of ECB decision
The euro (EUR) initially faced pressure during Friday’s session as the European Central Bank’s (ECB) dovish commentary at its policy decision on Thursday continued to weigh on the currency.
However, the safer euro was able to regain ground against its riskier peers during the US trading hours amid a bearish market mood.
This morning, the Eurozone’s latest industrial production figure could lend EUR some support. Economists expect output to have recovered in February.
US dollar (USD) hits new five-month high
The US dollar (USD) hit a fresh five-month high on Friday, enjoying its strongest week in over a year, as markets continued to scale back bets on Federal Reserve interest rate cuts.
In addition, a risk-off market mood boosted the safe-haven ‘greenback’. Investors grew increasingly anxious about the possibility of a direct conflict between Israel and Iran.
Turning to today, the latest US retail sales data could impact USD this afternoon. Forecasters expect US sales growth to have slowed but remained in positive territory. Will this be enough to support the ‘greenback’?
Canadian dollar (CAD) buoyed by rising oil prices
The crude-linked Canadian dollar (CAD) rose against most of its rivals on Friday as crude prices climbed, pulling CAD higher with them.
Oil prices could continue driving the ‘loonie’ today amid a lack of Canadian data. If crude extends its upside, CAD could too.
Australian dollar (AUD) lifted by stronger commodity prices
The Australian dollar (AUD) managed to tick higher overnight as rising commodity prices lifted the resource-linked currency.
New Zealand dollar (NZD) struggles as service sector contracts
The New Zealand dollar (NZD) was mixed overnight as an unexpected contraction in New Zealand service sector activity last month offset support stemming from stronger commodity prices.