Pound (GBP) climbs as markets reassess BoE easing outlook
The pound (GBP) strengthened on Thursday after the Bank of England (BoE) voted by a narrow margin to lower interest rates by 25bps.
The vote revealed a significant split, with four members of the nine-strong Monetary Policy Committee opting to keep rates unchanged. The BoE also upgraded its inflation projections, prompting markets to scale back expectations for future cuts.
Looking ahead, the BoE’s decision could keep Sterling supported today, although the absence of fresh UK economic releases may limit movement.
Euro (EUR) weakens on poor German output figures
The euro (EUR) fell sharply yesterday following a disappointing 1.9% drop in German industrial production for June, far worse than the 0.5% contraction forecast.
This followed Wednesday’s unexpected 1% fall in factory orders, adding to concerns over the state of the Eurozone’s largest economy.
With no major Eurozone data due today, the single currency may see a quieter end to the week.
US dollar (USD) mixed as jobless claims increase
The US dollar (USD) traded in mixed fashion on Thursday, with the safe-haven currency fluctuating despite a broadly risk-on market sentiment and a rise in US unemployment claims.
Losses were partly offset by news that Apple plans to invest an additional $100bn in the US over the next four years to sidestep tariffs.
With little US data on the calendar today, USD may remain guided by risk appetite and investor sentiment toward US economic policy, which could leave the ‘greenback’ under some pressure.
Canadian dollar (CAD) dips alongside falling oil prices
The oil-sensitive Canadian dollar (CAD) weakened yesterday amid declining crude prices and tariff concerns, though stronger-than-expected Ivey PMI figures helped limit losses.
Today’s focus turns to Canada’s July employment data, with an anticipated rise in the jobless rate potentially putting further strain on the ‘loonie’.
Australian dollar (AUD) edges higher despite risk-off tone
The Australian dollar (AUD) saw modest gains overnight, supported by higher commodity prices, even as market sentiment grew more cautious.
New Zealand dollar (NZD) steady as sentiment wanes
The New Zealand dollar (NZD) was largely flat overnight, with the risk-sensitive currency muted amid deteriorating global risk appetite.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.