Pound (GBP) slips despite encouraging figures
The pound (GBP) drifted lower against most of its peers during yesterday’s session, with Sterling sentiment seemingly unmoved by a run of upbeat UK data releases.
These included figures showing only a limited rise in government borrowing in December, alongside a smaller-than-anticipated decline in the UK’s distributive trades index this month.
Heading into today, Sterling has opened on firmer footing following stronger-than-expected retail sales data, although these gains could be tested later this morning if the UK’s latest PMIs fall short of expectations.
Euro (EUR) advances on tariff reprieve
The euro (EUR) climbed on Thursday as markets welcomed news that US President Donald Trump had abandoned plans to introduce fresh tariffs on European nations amid efforts to acquire Greenland.
Support for the single currency was also provided by minutes from the European Central Bank’s (ECB) most recent policy meeting, where some policymakers highlighted downside risks to inflation, potentially reinforcing the case for rates to remain unchanged.
Attention now turns to the Eurozone’s PMI releases, with the euro likely to attract further support if they point to continued improvement across the bloc’s private sector.
US dollar (USD) weakens amid upbeat market mood
The US dollar (USD) remained under pressure yesterday as improving risk appetite curbed demand for the safe-haven currency.
This came despite data showing US inflation remained stubborn through November and a slight upward revision to third-quarter US GDP.
Looking ahead, the dollar could claw back some ground later today if the latest S&P PMIs signal stronger momentum in US private sector activity this month.
Canadian dollar (CAD) subdued as oil prices dip
The Canadian dollar (CAD) struggled to gain traction on Thursday, as falling oil prices weighed on the commodity-linked currency.
Canada’s latest retail sales figures are due later today, with the ‘loonie’ likely to strengthen if the data shows sales growth continued to pick up in December.
Australian dollar (AUD) builds on gains after strong PMIs
The Australian dollar (AUD) continued to push higher overnight on Thursday after Australia’s PMI readings showed private sector growth far exceeded expectations this month.
New Zealand dollar (NZD) rises on inflation surprise
The New Zealand dollar (NZD) also edged higher in overnight trade as domestic inflation data exceeded forecasts in the final quarter of 2025.
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