Pound (GBP) supported as Healey signals business-friendly budget
The pound (GBP) edged higher on Thursday after Chancellor John Healey indicated that supporting businesses would be a priority in his first budget next week.
Although Healey stopped short of outlining specific measures, he recognised the difficulties companies have faced in recent years and emphasised the government’s ambition to foster entrepreneurship.
However, Sterling has come under renewed pressure this morning after the latest UK retail sales figures revealed a steeper-than-forecast decline in consumer spending last month. The pound could face further losses if October’s services PMI also falls short of expectations.
Euro (EUR) retreats as French borrowing costs hit 24-year high
The euro (EUR) extended its decline on Thursday as French government bond yields surged to their highest level in 24 years.
Rising borrowing costs are adding to the strain on the Eurozone’s second-largest economy, prompting some analysts to lower their growth projections for both 2026 and 2027.
Looking ahead, the single currency could find some support today if the Eurozone’s latest PMI surveys indicate that private sector activity across the bloc remains resilient.
US dollar (USD) supported by sharp rise in oil prices
The US dollar (USD) strengthened on Thursday as a sharp rally in oil prices heightened market uncertainty and encouraged investors to seek safety in the ‘greenback’.
The currency’s advance was also supported by an unexpected decline in initial jobless claims last week.
Although they tend to attract less attention than the ISM surveys, today’s S&P PMIs could provide further support for the US dollar if they indicate that private sector growth maintained a healthy pace in October.
Canadian dollar (CAD) lifted by surging oil prices
The Canadian dollar (CAD) advanced on Thursday, with a fresh jump in global oil prices boosting demand for the commodity-sensitive currency.
However, the ‘loonie’ may struggle to extend its gains today, as Canada’s latest retail sales figures are forecast to show that consumer spending slowed sharply last month.
Australian dollar (AUD) weakens amid cautious market mood
The Australian dollar (AUD) stumbled during Thursday’s Asian session as growing caution across financial markets dampened demand for the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) climbs on RBNZ tightening expectations
The New Zealand dollar (NZD) moved broadly higher in overnight trade as markets continued to anticipate an interest rate hike from the Reserve Bank of New Zealand (RBNZ) next week, shrugging off a weaker-than-expected inflation reading released on Thursday.
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