Pound (GBP) lifted by hawkish BoE expectations
The pound (GBP) advanced on Thursday, with support stemming from hawkish Bank of England (BoE) interest rate expectations.
Sterling also benefited from the relative weakness of most of its currency peers.
Adding to the upbeat tone, the UK’s latest GDP release this morning surprised to the upside, showing 0.3% growth in the second quarter, which could help the pound extend its upward momentum today.
Euro (EUR) quiet amid uncertainty over Trump-Putin talks
The euro (EUR) held steady on Thursday as traders adopted a cautious approach ahead of an anticipated meeting later this week between US President Donald Trump and Russian President Vladimir Putin.
Investors fear that any accord between Washington and Moscow could potentially sideline European interests and undermine regional stability.
The Eurozone’s own GDP figures are due today, but unless they differ from initial estimates, the impact on the euro is likely to be minimal.
US dollar (USD) weakens on growing Fed rate cut pressure
The US dollar (USD) fell back on Thursday as speculation intensified that the Federal Reserve might deliver deeper interest rate cuts.
The pressure was fuelled by fresh criticism from US President Donald Trump, followed by Treasury Secretary Scott Bessent urging Fed policymakers to slash rates by 50 basis points next month.
Today’s US producer price index could provide some relief for the greenback if it shows a rise in factory input costs, easing the market’s conviction for aggressive rate cuts.
Canadian dollar (CAD) pressured by falling oil prices
The Canadian dollar (CAD) slipped on Thursday as tumbling oil prices dragged the commodity-linked currency to fresh two-month lows.
If crude markets remain under pressure, the ‘loonie’ is likely to face further headwinds through today’s trade.
Australian dollar (AUD) supported by strong labour market data
The Australian dollar (AUD) firmed overnight after better-than-expected domestic employment figures prompted investors to pare back expectations for future Reserve Bank of Australia (RBA) rate cuts.
New Zealand dollar (NZD) dips on weaker risk appetite
The New Zealand dollar (NZD) edged lower overnight as risk-off sentiment in global markets curbed demand for the ‘kiwi’.
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