Pound (GBP) steady ahead of BoE rate decision
The pound (GBP) lacked clear direction on Wednesday, as investors remained cautious ahead of the Bank of England’s (BoE) latest interest rate decision.
With the BoE widely expected to hold interest rates steady today, market focus will be on the bank’s forward guidance.
If policymakers suggest that the recent rise in UK inflation could delay a rate cut beyond May, Sterling may gain ground.
Euro (EUR) pressured by lack of progress in Trump-Putin talks
The euro (EUR) faced headwinds on Wednesday amid disappointment over the lack of progress in discussions between US President Donald Trump and Russian President Vladimir Putin.
During their call on Tuesday, Putin refused to accept Trump’s ceasefire proposal, instead making demands that EU leaders claim show he is not serious about peace in Ukraine.
European Central Bank (ECB) President Christine Lagarde will speak this morning. If she delivers a hawkish message, the euro may find support.
US dollar (USD) slips as Fed lowers growth outlook
The US dollar (USD) retreated on Wednesday, following the Federal Reserve’s March policy update.
While the Fed’s kept rates on hold as was widely expected, the central bank’s downward revision of US growth forecasts weighed on the ‘greenback’.
However, the US dollar recouped most of its losses overnight as market sentiment deteriorated. If investors continue to favour safe-haven assets, the USD could extend its recovery today.
Canadian dollar (CAD) struggles as oil prices dip
The Canadian dollar (CAD) remained on the defensive on Wednesday as a drop in oil prices undermined the appeal of the commodity-tied currency.
With no notable Canadian data due for release, fluctuations in crude prices are likely to drive CAD movement today.
Australian dollar (AUD) weakens on disappointing jobs data
The Australian dollar (AUD) fell overnight after Australia’s latest employment data reported an unexpected contraction in job growth last month.
New Zealand dollar (NZD) slips despite upbeat GDP figures
The New Zealand dollar (NZD) also softened in overnight trade as a downturn in market risk appetite overshadowed stronger-than-expected domestic GDP figuresfor the final quarter of 2024.
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.