Forex Today: Pound Sterling edges higher on upbeat UK GDP, focus shifts to US PPI
Here is what you need to know on Friday, August 11:
Pound Sterling stays resilient against its major rivals early Friday after the data from the UK showed that the economy avoided stagnation in the second quarter. Following Wednesday's volatile action on US inflation data, the US Dollar Index holds steady as investors await Producer Price Index (PPI) figures for July. The US economic docket will also feature the University of Michigan's Consumer Sentiment Survey for August.
Gross Domestic Product (GDP) of the UK expanded 0.2% on a quarterly basis in the second quarter. Annualized GDP grew 0.4% in the same period, higher than the market expectation and the first quarter growth of 0.2%. Other data from the UK revealed that Industrial Production expanded by 1.8% on a monthly basis June, compared to analysts' estimate of 0.1%, while Manufacturing Production grew by 2.4%. Following these upbeat readings, GBP/USD trades in positive territory slightly above 1.2700 in the European session.
UK Preliminary GDP unexpectedly grows 0.2% in Q2 2023.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the strongest against the Swiss Franc.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.09% | -0.28% | -0.06% | -0.25% | -0.04% | 0.04% | 0.06% | |
| EUR | 0.09% | -0.18% | 0.03% | -0.15% | 0.05% | 0.10% | 0.15% | |
| GBP | 0.27% | 0.19% | 0.20% | 0.03% | 0.23% | 0.28% | 0.34% | |
| CAD | 0.09% | -0.01% | -0.20% | -0.15% | 0.03% | 0.08% | 0.14% | |
| AUD | 0.25% | 0.12% | -0.06% | 0.16% | 0.16% | 0.25% | 0.27% | |
| JPY | 0.05% | -0.02% | -0.21% | 0.00% | -0.14% | 0.10% | 0.11% | |
| NZD | -0.02% | -0.10% | -0.27% | -0.07% | -0.24% | -0.04% | 0.07% | |
| CHF | -0.06% | -0.15% | -0.34% | -0.12% | -0.31% | -0.10% | -0.06% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
After the US annual Consumer Price Index (CPI) and Core CPI data for July came in slightly below market expectations, the US Dollar weakened against its rivals, with the US Dollar Index (DXY) dropping to a fresh weekly low below 102.00 in the early American session. As Wall Street's main indexes erased strong opening gains later in the session, the USD managed to erase its losses. Early Friday, the DXY holds steady at around 102.50. Meanwhile, US stock index futures trade modestly higher and the 10-year US Treasury bond yield holds comfortably above 4.1%.
Following a spike above 1.1050 on Thursday, EUR/USD lost its traction and closed the day virtually unchanged. The pair clings to small daily gains at around 1.1000 on Friday.
USD/JPY extended its uptrend into a fourth straight day on Thursday and registered its highest daily close in a month near 144.70. The pair stays in a consolidation phase in the European session on Friday and fluctuates in a tight channel slightly above 144.50.
Gold price rose above $1,930 in the American session on Thursday but made a sharp U-turn, ending the day in negative territory near $1,910. XAU/USD edged higher toward $1,920 on Friday as the 10-year US yield holds steady.
Bitcoin advanced toward $30,000 after US inflation data but failed to preserve its momentum. BTC/USD stays on the back foot and trades below $29,500 in the European morning. Ethereum continues to move sideways near $1,850 for the third straight day on Friday
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
