Pound slips after GDP miss
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Daily Currency Update
GBP/USD slipped this morning as the latest growth data was released at 7am. January saw GDP drop -0.1% when +0.1% growth was predicted. The contraction was primarily assigned to a drop in manufacturing and GBP/USD dropped towards 1.29 before erasing its losses. Market attention is squarely focused on Donald Trump’s tariff agenda at present which changes hour by hour so backward-looking data, especially information that precedes his inauguration like this is currently being overlooked. The latest Trump barrage was delivered via his Truth Social platform where he threatened to put 200% tariffs on "all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES." EUR/USD trades around 1.0850.Key Movers
The global fear over Donald Trump's tariffs have seen the price of gold hit an all-time high of $2950 per troy ounce and stock markets around the world continue to haemorrhage cash. The S&P500 index in America seen as the best gauge of US stock market health has fallen 10% in around three weeks which represents $5 trillion of losses. This afternoon we have Prelim University of Michigan Consumer Sentiment and Inflation Expectations surveys which may garner more attention than usual, especially if there is a big fall. News also over a potential ceasefire in Ukraine will also be one to keep an eye on.Expected Ranges
- GBP/USD: 1.2860 - 1.3000 ▼
- GBP/EUR: 1.1870 - 1.1990 ▼
- GBP/AUD: 2.0445 - 2.0580 ▼
- EUR/USD: 1.0820 - 1.0920 ▼