Pound Ends the Week Strong despite Disappointing GDP – TorFX News

Credit: Original article can be found here

Pound (GBP) Climbs despite Slowdown in GDP 

The Pound (GBP) firmed on Friday, despite the UK’s GDP missing forecasts of 1.5% growth and slowing to 0.8%. 

The upside came as the UK prepares to lift most of the remaining lockdown restrictions on 19 July, which could have boosted demand for Sterling. 

The UK’s balance of trade figures may also have buoyed GBP, as they surprised investors by revealing a trade surplus for the first time since June 2020, with UK exports surging by 4.4% to a 16-month high. 

Today the Pound could stay strong as a survey of financial chiefs at UK companies shows that businesses intend to invest and acquire as the economy reopens, potentially boosting the UK’s productivity. 

Euro (EUR) Dips on Lack of Data 

The Euro (EUR) fell slightly through Friday’s session, but managed to gain against the US Dollar (USD). 

A lack of data releases left the Euro open to losses as other currencies gained on domestic news and risk appetite. 

This morning’s wholesale prices from Germany could act as a tailwind for the single currency, with both the year-on-year and month-on-month figures increasing by more than expected. 

US Dollar (USD) Dented by Upbeat Market Mood 

The US Dollar (USD) slipped at the end of last week as global risk appetite increased, draining demand for the safe-haven currency. 

The downside came despite US Treasury 10-year yields rebounding to break above the 1.36 mark. 

This rally in yields could support the US Dollar today, if they manage to gain or hold ground. Otherwise, risk appetite is likely to drive most movement in USD. 

Canadian Dollar (CAD) Firms on Unemployment Figures 

The Canadian Dollar (CAD) made some gains on Friday, boosted by Canada’s unemployment figures. 

The country added 230,700 jobs to its economy in June, beating forecasts of 195,000. Meanwhile, unemployment fell from 8.2% to 7.8%. 

With no data due out today, the commodity-linked ‘Loonie’ may be influenced primarily by oil prices. 

Australian Dollar (AUD) Flat as Risk Appetite Fades 

The Australian Dollar (AUD) was relatively rangebound in overnight trade, after the risk-on mood that buoyed it on Friday ebbed away somewhat. 

New Zealand Dollar (NZD) Dips on Shifting Market Mood 

The New Zealand Dollar (NZD) lost some ground overnight as a shift to a more bearish sentiment reduced demand for the risk-sensitive ‘Kiwi’.