Pound (GBP) wavers after softer GDP reading
The pound (GBP) struggled for direction yesterday, managing only brief gains after the UK’s latest GDP figures came in below expectations.
Economic growth remained at 0.1% in the final quarter of 2025, undershooting forecasts for a pickup to 0.2% and reinforcing speculation that the Bank of England (BoE) could move to cut interest rates in the near term.
With UK data thin on the ground today, Sterling may continue to lack a clear trajectory through the remainder of the week.
Euro (EUR) subdued amid data drought
The euro (EUR) traded quietly on Thursday as the ongoing scarcity of Eurozone economic releases kept volatility low.
Sentiment was also weighed down by lingering uncertainty over progress toward peace in Ukraine, with concerns that next week’s talks may stall over territorial issues.
The Eurozone will publish its latest GDP estimate later this morning, and confirmation of 0.3% growth in the fourth quarter could provide modest support to the single currency.
US dollar (USD) eases as haven demand fades
The US dollar (USD) edged lower against most peers yesterday as improving risk appetite reduced demand for the safe-haven currency.
Additional pressure stemmed from US initial jobless claims data, which showed a smaller-than-anticipated decline in early February.
Attention now turns to the latest US consumer price index release, with a forecast cooling in January inflation likely to temper recent hawkish Federal Reserve expectations and weigh on the dollar.
Canadian dollar (CAD) weighed down by weaker oil
The Canadian dollar (CAD) slipped on Thursday as falling oil prices diminished the attractiveness of the commodity-linked currency.
If crude continues to soften into the weekend, the ‘loonie’ may remain on the defensive through the end of the week.
Australian dollar (AUD) declines as mood deteriorates
The Australian dollar (AUD) retreated overnight on Thursday as a more cautious market tone curbed demand for the risk-sensitive currency.
New Zealand dollar (NZD) pressured by softer sentiment
The New Zealand dollar (NZD) also edged lower in overnight trade amid the prevailing downbeat market mood.
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