Pound (GBP) supported by UK-EU summit optimism
The pound (GBP) advanced against most major currencies on Wednesday, buoyed by investor optimism ahead of a key UK-EU summit.
While the primary focus of the meeting will be on defence and security cooperation, discussions around enhancing post-Brexit trade ties are also anticipated.
In the meantime, Sterling could find further support from the UK’s latest GDP release, which revealed a better-than-forecast rise in economic growth during Q1 2025.
Euro (EUR) climbs amid softer US dollar
The euro (EUR) enjoyed broad gains yesterday, with EUR exchange rates benefitting from the currency’s negative correlation with a weakening US dollar (USD).
That said, lingering concerns over EU-US trade tensions prevented the euro from pushing significantly higher.
A speech by European Central Bank (ECB) Vice-President Luis de Guindos today may act as the main catalyst for movement for the EUR today. A dovish message could apply renewed pressure to the euro.
US dollar (USD) remains under pressure post-CPI
The US dollar (USD) struggled to find support yesterday, with the currency still reeling from Tuesday’s weaker-than-expected inflation report.
Adding to the pressure were fresh remarks from President Donald Trump, who once again criticised the Federal Reserve and called for interest rate cuts.
The latest US retail sales data is scheduled for release today. If the data confirms a slump in consumer spending last month, the US dollar could weaken further.
Canadian dollar (CAD) dips as oil markets lose momentum
The Canadian dollar (CAD) trended lower on Wednesday, undermined by a downturn in crude oil prices that dragged on the commodity-sensitive currency.
With no Canadian data releases on the schedule, oil price movements will likely remain the key driver of CAD exchange rates today.
Australian dollar (AUD) retreats despite jobs data beat
The Australian dollar (AUD) edged lower in overnight trade as a cautious market tone offset a stronger-than-expected rise in Australian employment last month.
New Zealand dollar (NZD) weakens in risk-averse trade
The New Zealand dollar (NZD) also slipped overnight, with the risk-sensitive currency pressured by declining market appetite for risk assets.
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.