Pound (GBP) pressured by UK economic uncertainty
The pound (GBP) struggled through yesterday’s session as ongoing concerns about the UK’s economic outlook weighed on sentiment.
Despite upbeat growth projections from the National Institute of Economic and Social Research (NIESR), Sterling found little support as broader economic worries persisted.
However, the pound is attempting a recovery today after the UK’s latest GDP data reported a surprise uptick in growth at the end of 2024.
Euro (EUR) supported by risk-off flows
The euro (EUR) made gains on Wednesday, with the safe-haven currency attracting demand amid souring market sentiment.
However, the upside was limited by the euro’s negative correlation with the US dollar (USD), which also benefitted from shifting risk dynamics.
Later today, the Eurozone will release its latest industrial production report. A forecast decline in factory output for December could put pressure on the euro.
US dollar (USD) rallies as inflation beats forecasts
The US dollar (USD) surged on Wednesday following the release of hotter-than-expected US inflation data.
January’s inflation figures came in stronger than anticipated, prompting a fresh trimming of Federal Reserve rate cut bets and sending USD exchange rates sharply higher.
Looking ahead, the latest US producer price index data could bolster the US dollar further if it indicates persistent underlying inflationary pressures.
Canadian dollar (CAD) hit by trade worries
The Canadian dollar (CAD) faced headwinds on Wednesday, as concerns over Donald Trump’s proposed metal tariffs continued to weigh on sentiment.
Softening oil prices, combined with lingering trade uncertainty, may keep the ‘loonie’ on the defensive today.
Australian dollar (AUD) swings on market uncertainty
The Australian dollar (AUD) experienced choppy trade overnight as mixed risk appetite triggered volatility in the risk-sensitive currency.
New Zealand dollar (NZD) unsettled in volatile trade
The New Zealand dollar (NZD) also wavered in overnight dealings as shifting market sentiment led to uneven price action.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.