Pound (GBP) strengthens as Starmer-Trump talks loom
The pound (GBP) advanced during yesterday’s session, benefitting from weakness in several of its major counterparts.
Sterling’s gains were underpinned by optimism that the UK may avoid significant fallout from a potential transatlantic trade dispute.
Today, GBP investors will focus on UK Prime Minister Keir Starmer’s first in-person meeting with US President Donald Trump. A constructive discussion between the two leaders could offer further support to the pound.
Euro (EUR) pressured by weak German consumer sentiment
The euro (EUR) struggled on Wednesday following a disappointing slump in German consumer confidence, with sentiment for March dropping to an 11-month low.
Further weighing on EUR exchange rates were escalating fears over a possible trade war between the US and the EU.
The European Central Bank (ECB) will release the minutes from its January policy meeting later today. If the report highlights a cautious stance from policymakers, the euro could face additional headwinds.
US dollar (USD) rises amid cautious market mood
The US dollar (USD) gained ground on Wednesday, as uncertainty over US trade policy saw investors seek out the safe-haven currency.
However, these gains remained limited as US Treasury yields continued their downward trend.
Later today, the US will release its latest durable goods orders data. A forecast rebound in order growth could help extend the US dollar’s gains.
Canadian dollar (CAD) struggles as oil prices hit two-month low
The Canadian dollar (CAD) remained under pressure on Wednesday, as another drop in oil prices weighed on the commodity-tied currency.
With no notable Canadian data on the calendar, CAD movement is likely to remain closely linked to shifts in crude prices.
Australian dollar (AUD) slips as risk appetite fades
The Australian dollar (AUD) lost ground overnight, as growing caution in global markets prompted investors to move away from risk-sensitive assets like the ‘Aussie’.
New Zealand dollar (NZD) dips despite upbeat economic data
The New Zealand dollar (NZD) also declined in overnight trade, as an improvement in domestic business confidence was overshadowed by broader risk-off sentiment.
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