Pound (GBP) undermined by dovish BoE bets
The pound (GBP) faltered through Thursday’s trade as expectations of looming Bank of England (BoE) rate cuts continued to drag on Sterling sentiment.
Fresh evidence of a cooling UK economy has fuelled speculation that the BoE may slash rates multiple times in 2026.
Looking ahead, the pound is likely to stay on the back foot today following figures confirming an unexpected drop in UK GDP in October.
Euro (EUR) supported by USD weakness
The euro (EUR) crept higher on Thursday, with the single currency lifted by its inverse trade relationship with the US dollar (USD).
Additional support stemmed from the expected policy divergence between the European Central Bank (ECB) and Federal Reserve next year.
With no notable Eurozone releases on the calendar, broader market sentiment is likely to steer euro movement as the week concludes.
US dollar (USD) slides following Fed rate cut
The US dollar extended its downward trajectory yesterday, sinking to fresh multi-month lows as markets continued to react to the Federal Reserve’s unexpectedly dovish rate cut on Wednesday.
Further losses followed a surprisingly steep rise in weekly jobless claims, which climbed to a three-month peak of 236,000.
A lack of major US data today could leave the US dollar susceptible to additional dovish Fed speculation.
Canadian dollar (CAD) supported by rising exports
The Canadian dollar (CAD) ticked higher on Thursday after an unexpected improvement in September’s export figures helped offset pressure from softer crude prices.
With no notable CAD releases due, the ‘loonie’ may come under strain if oil prices continue to drift lower.
Australian dollar (AUD) wavers amid mixed mood
The Australian dollar (AUD) moved without clear direction overnight on Thursday as a tentative risk tone limited appetite for the currency.
New Zealand dollar (NZD) flat in muted trade
The New Zealand dollar (NZD) also held to a tight range during overnight dealings, with a lacklustre market mood capping movement.
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