Pound (GBP) slips amid profit-taking
The pound (GBP) weakened against the majority of its peers on Thursday as investors locked in gains after Sterling had climbed to fresh multi-month highs earlier in the week.
Markets also appeared to shrug off the UK’s latest GDP release, even though May’s month-on-month figures showed the economy returned to expansion after contracting in April.
With little UK economic data due today, domestic politics may remain the main influence on Sterling. Any additional reports that incoming Prime Minister Andy Burnham intends to appoint Shabana Mahmood as Chancellor could provide the pound with a fresh lift.
Euro (EUR) subdued amid lack of Eurozone data
The euro (EUR) lacked clear direction on Thursday amid the absence of any notable Eurozone economic releases.
Although concerns surrounding higher gas prices encouraged some traders to sell the single currency, the effect on EUR exchange rates proved fairly limited.
Attention now turns to the Eurozone’s latest consumer price index, with the euro potentially coming under pressure if June’s final inflation figures confirm a marked slowdown in price growth.
US dollar (USD) supported by geopolitical tensions
The US dollar (USD) remained broadly supported during Thursday’s session as escalating tensions in the Middle East sustained demand for the safe-haven currency.
That upside was limited, however, after the latest US retail sales report suggested consumer spending lost momentum toward the end of the second quarter.
Looking ahead, the US dollar is attracting renewed demand today as a global technology stock selloff unsettles investors. The ‘greenback’ could build on these gains later this afternoon if US consumer sentiment is shown to have strengthened this month.
Canadian dollar (CAD) lifted by stronger oil prices
The Canadian dollar (CAD) edged higher on Thursday, benefiting from another rise in crude oil prices that boosted the appeal of the commodity-linked currency.
The ‘loonie’ is expected to remain closely aligned with oil price movements today, with further gains in crude likely to help extend CAD’s positive momentum into the weekend.
Australian dollar (AUD) pressured by equity market volatility
The Australian dollar (AUD) moved lower during Thursday night’s Asian session as renewed fears of an AI-driven stock market bubble dampened investor risk appetite.
New Zealand dollar (NZD) weighed down by cautious sentiment
The New Zealand dollar (NZD) also drifted lower in overnight trading as the prevailing risk-off mood discouraged demand for the ‘kiwi’.
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