Pound (GBP) subdued by softer inflation print
The pound (GBP) weakened on Wednesday after UK inflation data fell short of expectations.
The latest consumer price index showed inflation easing from 2.8% to 2.6% in March, marking a three-month low and reinforcing market expectations of a Bank of England (BoE) rate cut in May.
With no further UK economic releases scheduled this week, broader risk sentiment will likely guide the pound’s movements today.
Euro (EUR) supported as USD slides
The euro (EUR) extended its gains yesterday, benefitting from the persistent weakness in the US dollar (USD).
That said, caution ahead of today’s European Central Bank (ECB) policy announcement limited EUR’s upside, as traders held off on placing fresh bets.
The ECB is widely expected to cut rates, so any volatility in the euro will likely come from the bank’s forward guidance. A dovish message could see EUR stumble.
US dollar (USD) dips amid trade concerns
The US dollar slipped further on Wednesday as unease over the US administration’s tariff plans continued to weigh on investor sentiment.
Even a stronger-than-forecast US retail sales reading failed to lift the dollar, with some analysts warning the rise may reflect pre-tariff panic buying by consumers.
If worries persist about the broader economic fallout from President Trump’s tariffs, the dollar could remain under pressure.
Canadian dollar (CAD) climbs after BoC holds rates
The Canadian dollar (CAD) found support yesterday following the Bank of Canada’s (BoC) latest interest rate decision. The central bank left rates unchanged and signalled a cautious approach to future cuts amid ongoing trade uncertainty.
With no Canadian data due today, CAD investors are likely to take their cues from oil market trends. A further rise in crude prices could lend the loonie more support.
Australian dollar (AUD) flat after uneven jobs figures
The Australian dollar (AUD) lacked momentum overnight following a mixed domestic labour market report. While unemployment remained steady, slower-than-expected employment growth limited demand for AUD.
New Zealand dollar (NZD) retreats despite CPI surprise
The New Zealand dollar (NZD) edged lower in overnight trade, as risk aversion in global markets overshadowed an above-forecast inflation reading.
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