Pound (GBP) supported by hawkish BoE repricing
The pound (GBP) trended broadly higher through yesterday's session as the currency continued to be underpinned by hawkish Bank of England (BoE) interest rate bets.
Sterling gains were also aided by the weakness of many of its peers.
Meanwhile, the UK's latest GDP figures surprised to the upside this morning, with a 0.3% expansion in the second quarter, potentially helping the pound maintain its bullish momentum today.
Euro (EUR) subdued amid Trump-Putin meeting uncertainty
The euro (EUR) was muted on Wednesday amid a sense of caution ahead of US President Donald Trump's meeting with his Russian counterpart later in the week.
EUR investors are wary that any potential deal agreed between the two powers might undermine European interests and regional security.
The Eurozone will also release its latest GDP figures today, but unless they deviate from the preliminary estimate, their impact on the euro may be negligible.
US dollar (USD) slides on dovish Fed bets
The US dollar (USD) retreated through yesterday's session amid mounting pressure on the Federal Reserve to cut interest rates.
Following fresh criticism from US President Donald Trump on Tuesday, US Treasury Secretary Scott Bessent added to the political pressure on the US central bank by calling for Fed policymakers to deliver a half-point rate cut next month.
Looking ahead, the latest US producer price inflation figures could offer some respite for the US dollar today, if an acceleration in factory input prices helps to temper Fed rate cut bets.
Canadian dollar (CAD) pressured by soft oil prices
The Canadian dollar (CAD) stumbled on Wednesday, with the appeal of the commodity-linked currency diving as oil prices slumped to a new two-month low.
Expect CAD exchange rates to continue to soften today if oil prices remain in retreat.
Australian dollar (AUD) underpinned by upbeat jobs data
The Australian dollar (AUD) strengthened overnight on Wednesday after robust domestic jobs data prompted AUD investors to trim their Reserve Bank of Australia (RBA) rate cut bets.
New Zealand dollar (NZD) slips in cautious trade
The New Zealand dollar (NZD) retreated in overnight trade as a negative shift in risk sentiment saw investors shy away from the 'kiwi'.
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