US Dollar falls following release of GDP data

Key Movers

The EUR/USD experienced a rebound today, recovering from its low of 1.07998, and looking to surpass the 1.08303 level. Investors were closely watching vital inflation data from major Eurozone economies to help find insights into the potential policy direction of the European Central Bank (ECB). Traders anticipated a 90 basis point (bps) rate cut from the ECB within the year.

The GBP/USD hovered around 1.26493, having dipped to approximately 1.26252. Anticipated shifts in interest rates by the Bank of England (BoE), aligning with actions taken by other major central banks like the Fed and ECB, likely caused this movement. The potential reduction in rates was linked to sustained high price pressure in the UK, driven by elevated wage growth. Market participants will continue to eye August as a potential timeframe for the BoE to initiate rate cuts.

The CAD faced downward pressure as oil prices declined. West Texas Intermediate (WTI) oil prices broke their two-day winning streak, to hover near $77.80 a barrel. The obstacles encountered by the oil market, attributed to increased borrowing costs, have affected global economic growth, and diminishing oil demand. The USD/CAD duo traded around 1.35736 after hitting a high near 1.36048. Today saw the release of US GDP data at 3.2%, Canada’s GDP data release will follow tomorrow.