Pound (GBP) subdued ahead of sluggish GDP print
The pound (GBP) was rangebound yesterday, with a lack of fresh UK data leaving Sterling directionless.
After Sterling steadied in the wake of Tuesday’s labour market figures, GBP traders were reluctant to make major moves before the release of the latest GDP data this morning.
As anticipated, the UK economy expanded by just 0.1% in August, while July’s figure was revised down from stagnation to a 0.1% contraction. With Britain’s economic growth looking weak, the pound may find it difficult to gain traction today.
Euro (EUR) steady following mixed industrial data
The euro (EUR) traded narrowly yesterday as investors reacted to the latest Eurozone industrial figures.
Although production across the bloc fell 1.2% month on month in August, this was a smaller decline than forecast, and annual output growth of 1.1% offered some relief.
Today’s focus will shift to the Eurozone’s trade balance for August. Forecasts of a smaller surplus could exert mild pressure on the common currency.
US dollar (USD) eases amid dovish Fed signals
The US dollar (USD) edged lower on Wednesday as a mildly upbeat market mood and growing expectations for Federal Reserve interest rate cuts dampened demand for the ‘greenback’.
The slip followed remarks from Fed Chair Jerome Powell on Tuesday evening, in which he left the option of additional easing on the table.
Attention now turns to speeches from three more Fed officials later today. If they strike a similarly dovish tone, the dollar could face renewed selling pressure.
Canadian dollar (CAD) slips on BoC rate cut speculation
The crude-linked Canadian dollar (CAD) fell against its major counterparts yesterday, weighed down by continued oil price weakness and speculation the Bank of Canada (BoC) could continue cutting rates.
Canada’s business barometer index is due later today. Another disappointing result may increase the pressure on the ‘loonie’.
Australian dollar (AUD) weakens as jobless rate climbs
The Australian dollar (AUD) lost ground overnight after Australia’s unemployment rate unexpectedly rose from 4.3% to 4.5% in September, fuelling bets on further policy easing from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) rebounds from multi-year lows
The New Zealand dollar (NZD) initially fell to fresh multi-year lows overnight before recovering, supported by a modest improvement in global risk appetite.
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