Pound (GBP) drifts in absence of fresh catalysts
The pound (GBP) traded without strong directional bias yesterday, as the continued lack of UK economic data left investors with little incentive to drive momentum.
Despite downward pressure from stronger peers, Sterling’s losses were cushioned by persistent optimism over the UK’s economic outlook.
With no new domestic data on tap today, the pound may remain rudderless through the remainder of the session.
Euro (EUR) weakens on German jobs data
The euro (EUR) edged lower on Wednesday after Germany’s latest unemployment report flagged a rise in joblessness.
Although the jobless rate held steady, the number of unemployed persons jumped by 34,000. The sharpest increase since July 2022 and pushing the total to nearly 3 million.
In the absence of key Eurozone figures, the euro’s movements may be driven by updates on EU-US trade discussions today.
US dollar (USD) spikes on tariff ruling
The US dollar (USD) fluctuated through Wednesday’s European session as markets awaited the release of the Federal Reserve’s latest meeting minutes, which confirmed a cautious approach to future rate changes.
The greenback then shot higher overnight after a US federal court ruled that President Trump had overstepped his authority in introducing broad retaliatory tariffs.
Attention now turns to this afternoon’s US GDP release. If the Q1 estimate confirms a 0.3% contraction – or worse – USD could face renewed selling pressure on revived recession concerns.
Canadian dollar (CAD) lifted by oil price gains
The Canadian dollar (CAD) firmed on Wednesday, as rising oil prices helped support the commodity-tied currency.
Should crude continue climbing, the loonie could build on yesterday’s gains through today’s trading.
Australian dollar (AUD) climbs on upbeat sentiment
The Australian dollar (AUD) found support overnight after markets welcomed the tariff ruling, boosting risk appetite and lifting the ‘Aussie’.
New Zealand dollar (NZD) drops on weak confidence data
The New Zealand dollar (NZD) fell back overnight, with a fresh decline in domestic business confidence weighing on the currency.
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