Pound (GBP) weighed down by weaker growth
The pound (GBP) struggled on Thursday after the UK’s latest GDP reading undershot forecasts.
Third-quarter growth came in at just 0.1%, reinforcing expectations the Bank of England (BoE) will cut interest rates in December and intensifying pressure on Chancellor Rachel Reeves ahead of her autumn budget.
The pound remains on the back foot this morning amid fresh budget jitters, following reports of a U-turn on the government’s plans to raise income tax.
Euro (EUR) edges higher as USD softens
The euro (EUR) firmed on Thursday, supported by its inverse relationship with the US dollar (USD).
However, the single currency’s advance was constrained after the Eurozone’s latest industrial output data missed forecasts.
The European Commission will publish its updated economic projections later today. A brighter outlook for growth could help extend the euro’s upward momentum.
US dollar (USD) dips amid stronger risk appetite
The US dollar weakened throughout Thursday’s session as improving market sentiment reduced the appeal of the safe-haven currency.
The upbeat tone followed President Donald Trump’s signing of a funding bill that officially ended the longest US government shutdown on record.
Looking to today, USD movement may be muted as investors prepare for a wave of upcoming US economic data releases.
Canadian dollar (CAD) soft as USD retreats
The Canadian dollar (CAD) was on the back foot on Thursday, pressured by its positive correlation with a softer US dollar.
Later in the week, CAD exchange rates could recover if oil prices continue to climb heading into the weekend.
Australian dollar (AUD) mixed after uneven Chinese data
The Australian dollar (AUD) experienced choppy trade overnight on Thursday as inconsistent Chinese data caused shifts in market risk appetite.
New Zealand dollar (NZD) lifts on upbeat PMI
The New Zealand dollar (NZD) advanced in overnight trade, buoyed by a stronger-than-anticipated manufacturing PMI reading.
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