Pound (GBP) slips despite upbeat GDP reading
The pound (GBP) came under pressure through yesterday’s session, even as UK GDP exceeded expectations in November.
Although a 0.3% expansion helped undermine arguments for an additional Bank of England (BoE) rate cut next month, analysts cautioned it was unlikely to prevent growth from stalling in the final quarter of 2025.
With UK data thin on the ground today, moves in the pound are likely to be steered by broader market sentiment.
Euro (EUR) steady after mixed German GDP release
The euro (EUR) traded in a narrow range on Thursday following the release of Germany’s latest GDP figures.
While the 2025 data showed the Eurozone’s largest economy returned to growth for the first time since 2022, it also included a downgrade to 2024 growth from –0.2% to –0.5%.
Looking ahead, with Germany’s final December inflation figures confirming a sharp easing in price pressures, the euro may struggle to find support as we head into the weekend.
US dollar (USD) rises on encouraging data
The US dollar (USD) found broad support yesterday as investors welcomed a surprise decline in US jobless claims.
New claims fell from 207,000 to 198,000, strengthening expectations the Federal Reserve may hold off on cutting interest rates until June.
The US dollar may remain underpinned through today’s session if risk sentiment stays fragile and US industrial production data holds up.
Canadian dollar (CAD) falls as oil prices slide
The Canadian dollar (CAD) came under pressure on Thursday as a sharp drop in oil prices dented demand for the commodity-linked currency.
Should crude prices continue to tumble, the ‘loonie’ is likely to stay on the back foot for the rest of the week.
Australian dollar (AUD) hampered by RBA uncertainty
The Australian dollar (AUD) wobbled overnight on Friday as a slight scaling back of Reserve Bank of Australia (RBA) rate hike expectations stalled the currency’s previous momentum.
New Zealand dollar (NZD) supported by improved risk appetite
The New Zealand dollar (NZD) edged higher in overnight trade, buoyed by an improvement in overall market risk sentiment.
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