Pound (GBP) rebounds as BoE holds rates steady
The pound (GBP) firmed on Thursday after the Bank of England (BoE) opted to keep interest rates unchanged at its latest policy gathering.
Although the move was broadly priced in, it revealed a split within the Monetary Policy Committee, with a narrow 5–4 vote in favour of maintaining current rates. This division fuelled speculation the BoE could still deliver one final rate cut before the end of the year.
With no notable UK data scheduled today, Sterling may continue to be driven by overall market mood and persistent uncertainty surrounding Chancellor Reeves’s autumn budget, which continues to weigh on GBP sentiment.
Euro (EUR) gains limited by disappointing data
The euro (EUR) edged higher on Thursday, supported by its inverse relationship with the US dollar (USD).
However, the single currency’s advance was restrained after both German industrial output and Eurozone retail sales missed forecasts.
Germany’s latest trade data could offer the euro some support today. Although the country’s trade surplus narrowed in September, an uptick in exports may help provide a modest lift to the single currency heading into the weekend.
US dollar (USD) loses momentum
The US dollar drifted lower yesterday as part of a broader market correction that has also been evident across global equities in recent days.
This follows concerns that recent hawkish bets on Federal Reserve policy may have gone too far, alongside renewed anxiety over the prolonged US government shutdown.
Later today, attention will turn to the University of Michigan’s consumer sentiment index. Any deterioration in household confidence this month could put the US dollar under renewed pressure.
Canadian dollar (CAD) flat as oil weakens
The Canadian dollar (CAD) was rangebound on Thursday, as a fresh slide in oil prices dampened appetite for the commodity-sensitive currency.
Focus now shifts to Canada’s latest employment figures, with the ‘loonie’ potentially falling if data confirms the domestic labour market continued to lose momentum last month.
Australian dollar (AUD) slips on weak Chinese data
The Australian dollar (AUD) fell overnight on Thursday, weighed down by disappointing Chinese trade figures that reignited concerns over demand for Australian exports.
New Zealand dollar (NZD) softens amid risk aversion
The New Zealand dollar (NZD) also weakened during overnight trade, as renewed fears over China’s economic health curbed global risk appetite.
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