Pound (GBP) falls amid UK-US trade setback
The pound (GBP) weakened against most major peers on Wednesday, dragged lower by fresh doubts over a future UK-US trade agreement.
This came after reports suggested US President Donald Trump had downgraded trade talks with the UK in favour of prioritising negotiations with countries like Japan, India, and South Korea.
The UK’s local elections take place today. A poor result for Labour may weigh on GBP if it fuels uncertainty over political stability.
Euro (EUR) gains on upbeat growth data
The euro (EUR) strengthened yesterday following the publication of stronger-than-expected Eurozone GDP figures.
The bloc’s economy grew 0.4% in the first quarter, easing pressure on the European Central Bank (ECB) to deliver imminent interest rate cuts.
The euro may trade within a narrow range today as investors look ahead to the release of key Eurozone inflation data due on Friday.
US dollar (USD) resilient despite GDP miss
The US dollar (USD) advanced on Wednesday, with the currency managing to push higher in spite of disappointing domestic growth figures.
US GDP contracted more than expected in the first quarter, but USD demand remained firm, partly driven by expectations that the White House may ease some of its tariff plans.
Attention will turn to the latest ISM manufacturing PMI today. If the index reports further weakness, the US dollar could come under renewed pressure.
Canadian dollar (CAD) climbs on surprise growth
The Canadian dollar (CAD) ticked higher during Wednesday’s session after March GDP data showed a stronger-than-forecast rebound in domestic economic activity.
Oil prices may influence the movement of CAD through today’s session. A continued downtrend in the crude market could see the currency relinquish its recent gains.
Australian dollar (AUD) lifts on export surge
The Australian dollar (AUD) initially rose overnight thanks to a notable rise in export volumes. However, a shift in global risk appetite saw the currency give up most of its gains by the start of the European session.
New Zealand dollar (NZD) dips on risk aversion
The New Zealand dollar (NZD) depreciated in overnight trade, as investors shied away from risk-sensitive assets amid deteriorating market sentiment.
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