The dollar is firmer on the day as it works to claw back losses suffered from the aftermath of the US CPI data on Wednesday. If the trade then was to punish those betting against a Fed pivot, the bond market clearly had other ideas and we are now seeing things run back in FX as well.

GBP/USD is the worst performer, down 0.7% to 1.2130 after having scaled as high as 1.2215 earlier in the day right upon the UK Q2 GDP data release. The figures were better than expected but it still pointed to a contraction in the UK economy, well before the long recession forecast by the BOE later in the year through to next year.

GBPUSD D1 12-08

From a technical perspective, the drop also comes amid a rejection against the trendline resistance (white line) above 1.2200.

Elsewhere, EUR/USD is down 0.3% to 1.0290 and keeping just below a large set of expiries (around €2.8 billion) at 1.0300-10 today. USD/JPY is also keeping higher by 0.4% to 133.50 but the range play remains between its 100-day moving average (red line) at 131.32 and the 135.00 mark for the time being.

Looking at commodity currencies, the aussie was higher earlier but has seen gains dissipate in a drop from 0.7125 to 0.7098 currently but continues to dance around its 100 and 200-day moving averages as outlined earlier here.