Pound (GBP) slips as UK budget takes centre stage
The pound (GBP) weakened ahead of yesterday’s UK Autumn Budget, with currency markets adopting a cautious stance before the Chancellor’s announcement.
Sterling subsequently struggled to recover, despite a broadly positive market reaction to Chancellor John Healey’s fiscal plans, as the Office for Budget Responsibility (OBR) delivered a sharp downgrade to its UK growth forecast for 2027.
Looking ahead, a quiet UK economic calendar could leave the pound trading within a narrow range today.
Euro (EUR) recovers despite disappointing German figures
The euro (EUR) staged a modest recovery yesterday after touching fresh multi-month lows, with a retreat in French bond yields offering some relief to the single currency.
However, weaker German consumer confidence ahead of November held back the euro’s rebound.
Turning to today, markets will be focused on the European Central Bank’s (ECB) latest interest rate decision, with the bank set to leave rates unchanged. A hawkish tilt to the decision could lend support to the euro, while a more cautious tone from the central bank could leave EUR exposed to further losses.
US dollar (USD) weakens following Fed decision
The US dollar (USD) traded in a narrow range yesterday as markets awaited the Federal Reserve’s latest interest rate announcement.
As anticipated, the Fed left rates unchanged. However, a slightly dovish tone prompted the USD to fall as investors scaled back expectations of a rate hike in December.
Today, attention turns to the latest US GDP figures and core PCE price index. Stronger economic growth in the third quarter, alongside rising inflation in September, could provide fresh support for the US dollar.
Canadian dollar (CAD) supported by BoC rate hike
The Canadian dollar (CAD) strengthened against its weaker counterparts yesterday after the Bank of Canada (BoC) raised interest rates to 2.5%, in line with expectations.
Looking ahead, movements in oil prices could remain a key influence on the crude-linked Canadian dollar today. Sustained high prices may help underpin CAD.
Australian dollar (AUD) retreats as investors take profits
The Australian dollar (AUD) climbed to monthly highs against some of its peers overnight before surrendering ground as investors moved to lock in profits.
New Zealand dollar (NZD) subdued despite stronger data
The New Zealand dollar (NZD) struggled to gain traction overnight, despite an unexpected improvement in New Zealand business confidence in October. The Reserve Bank of New Zealand’s (RBNZ) surprise decision to hold interest rates steady continued to weigh on demand for NZD.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.