Pound (GBP) slips on disappointing UK GDP
The pound (GBP) ended last week under pressure after the UK’s latest GDP release failed to meet expectations.
Month-on-month data for October revealed an unexpected 0.1% contraction, intensifying stagflation fears and effectively locking in an interest rate cut from the Bank of England (BoE) this week.
As the new week begins, Sterling could remain on the back foot ahead of several high-impact UK data releases scheduled for later in the week.
Euro (EUR) flat amid Bulgaria Eurozone uncertainty
The euro (EUR) traded sideways on Friday as the abrupt resignation of Bulgaria’s government cast doubt over the country’s planned entry into the Eurozone next month.
Prime Minister Rosen Zhelyazkov’s resignation follows widespread street protests and raises the prospect of Bulgaria heading towards its eighth election since 2021, clouding the outlook for euro adoption.
The euro may find some direction today from Eurozone industrial production figures, with a forecast slowdown in factory output for October potentially weighing on EUR sentiment.
US dollar (USD) rebounds from recent lows
The US dollar (USD) posted modest gains on Friday, drawing interest from price-conscious investors after tumbling to fresh multi-month lows a day earlier.
However, the recovery in USD remained limited amid persistent dovish rate cut expectations following the Federal Reserve’s policy decision earlier in the week.
Later today, December’s Empire State manufacturing index could put renewed pressure on the US dollar, as economists anticipate a further cooling in New York State factory activity.
Canadian dollar (CAD) steady despite softening oil prices
The Canadian dollar (CAD) finished last week largely unchanged, even as forecasts for a global oil surplus next year pushed crude prices lower once again.
Attention now turns to Canada’s latest consumer price index, where a pick-up in inflation last month could help provide some support for the ‘loonie’.
Australian dollar (AUD) dented by soft Chinese data
The Australian dollar (AUD) edged lower during Monday’s Asian session, undermined by unexpectedly weak Chinese industrial production and retail sales figures.
New Zealand dollar (NZD) slips in risk-off trade
The New Zealand dollar (NZD) also drifted lower overnight, as disappointing data from China dampened market risk appetite.
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