Pound (GBP) wavers following mixed GDP data
The pound (GBP) traded without a clear trajectory yesterday, as mixed UK GDP figures injected volatility into Sterling.
Although first-quarter GDP in 2026 was confirmed at 0.6%, putting the UK at the head of the G7 over the period, growth at the end of 2025 was revised lower. Meanwhile, April’s GDP release showed the economy contracted by 0.1%.
Looking ahead, GBP investors will be focused on a speech from Bank of England (BoE) Governor Andrew Bailey today. Should Bailey strike a cautious note, Sterling could come under pressure.
Euro (EUR) volatile after German releases
The euro (EUR) also traded unevenly yesterday, as mixed German data and movement in the US dollar (USD) drove volatility in the single currency.
German retail sales and unemployment figures both beat forecasts, offering EUR some support. However, Germany’s latest consumer price index showed inflation cooled by 0.3 percentage points in June, limiting the euro’s upside.
Turning to today, the Eurozone’s latest CPI figures will be in focus for EUR investors. If inflation softened as expected last month, the common currency may weaken.
US dollar (USD) weakens following downbeat consumer confidence
The US dollar initially strengthened yesterday, supported by a cautious overnight market mood, before beginning to falter as sentiment improved.
The ‘greenback’ then lost ground in the afternoon after the latest CB consumer confidence index showed that US household morale was weaker than anticipated in June.
Today, a pair of US data releases and a speech from Federal Reserve Chair Kevin Warsh could support USD. Jobs growth and manufacturing activity are both expected to have remained robust in June, while Warsh may signal the need for tighter monetary policy.
Canadian dollar (CAD) mixed despite stronger GDP
The Canadian dollar (CAD) traded unevenly yesterday, as stronger-than-forecast GDP figures helped offset pressure from CAD’s positive correlation with the falling US dollar.
Looking forward, Bank of Canada (BoC) Governor Tiff Macklem is scheduled to speak today. If Macklem suggests the bank could consider raising interest rates, CAD may strengthen.
Australian dollar (AUD) slumps amid weak data and cautious trade
The Australian dollar (AUD) dropped sharply overnight, as a risk-off market mood and a much weaker-than-expected Ai Group industry index weighed heavily on the ‘Aussie’.
New Zealand dollar (NZD) rises on RBNZ rate hike bets
The New Zealand dollar (NZD) edged higher overnight after the International Monetary Fund (IMF) said the Reserve Bank of New Zealand (RBNZ) should raise interest rates in the near term.
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