Pound (GBP) falls despite robust GDP data
The pound (GBP) weakened yesterday afternoon amid speculation over whether Prime Minister Keir Starmer could resign following the departure of Health Secretary Wes Streeting.
This eclipsed stronger-than-expected UK GDP data, which showed the UK economy expanded by 0.6% in the first quarter of 2026 despite headwinds from the Middle East crisis.
Looking ahead, UK political developments may remain the primary focus for GBP investors today, potentially capping demand for Sterling.
Euro (EUR) subdued amid lack of data
The euro (EUR) moved in a narrow range on Thursday, as an absence of notable Eurozone economic releases left the single currency without a clear driver.
Broader market sentiment also provided little direction, with investors adopting a cautious tone through the session.
With Eurozone data still thin on the ground today, the euro may struggle to find a clear trajectory.
US dollar (USD) upside limited by soft data
The US dollar (USD) strengthened yesterday, as cautious trade surrounding US President Donald Trump’s summit with Chinese President Xi Jinping increased demand for the safe-haven currency.
However, USD’s gains were modest after US data showed retail sales growth slowed sharply last month, while jobless claims rose by more than expected in the second week of May.
Trump is due to conclude his summit with Xi today. The ‘greenback’ could weaken if there are signs the two leaders discussed Iran and a possible route to reopening the Strait of Hormuz.
Canadian dollar (CAD) muted as oil prices pause
The Canadian dollar (CAD) traded flat through Thursday’s session, with stalled oil prices limiting movement in the commodity-linked currency.
Looking ahead, the ‘loonie’ is likely to remain sensitive to oil price dynamics today.
Australian dollar (AUD) slumps as mood deteriorates
The Australian dollar (AUD) tumbled during Friday’s Asian session, as a sharp deterioration in market risk appetite weighed heavily on the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) slides in risk-off trade
The New Zealand dollar (NZD) also fell steeply during overnight trade, as the souring market mood dragged on the risk-sensitive currency.
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