investingLive European FX news wrap: UK GDP misses, Gold extends gains

In recent data releases, the most notable highlight was the UK's GDP missing expectations. This result heightened bets for a rate cut by the Bank of England, increasing the total easing expected by the end of 2026 from 57 basis points to 61 basis points, leading to a drop in the Pound as investors look to the possibility of further cuts. Conversely, gold prices are surging following a key technical breakout yesterday. The decline in real yields has positively impacted gold, bringing it close to the all-time high set in October, influenced by dovish remarks from Fed Chair Powell. US equities remain in a range but still exhibit a bullish bias. The bear steepening in US Treasuries has resumed with the 10Y-2Y spread nearing the breaking point of April 2025 highs. The US dollar has recovered some losses from yesterday, but this seems more like a technical pullback due to the lack of catalysts today. A further pullback might occur before the upcoming NFP given the anticipated high volatility. The American session has no major events except for a few Fed speakers, and we wish everyone a nice weekend.