Pound (GBP) drifts amid lack of UK data
The pound (GBP) remained directionless on Wednesday, with the absence of any notable UK economic releases leaving Sterling adrift.
Traders instead focused on earlier commentary from Bank of England (BoE) officials, which offered conflicting signals on future monetary policy.
All eyes will be on BoE Governor Andrew Bailey later today. If he again pushes back on the need for an August rate cut, it could lend fresh support to the pound.
Euro (EUR) muted on renewed EU-US trade tensions
The euro (EUR) struggled for momentum yesterday as concerns resurfaced over EU-US trade relations.
Sentiment soured after the EU signalled it will retaliate if US President Donald Trump maintains his 10% tariffs on European goods.
A speech from European Central Bank (ECB) Vice President Luis De Guindos may drive euro movement today. Any signs of a more hawkish tone could curb ECB rate cut bets and lift the single currency.
US dollar (USD) weakens on Fed leadership speculation
The US dollar (USD) traded sideways for much of Wednesday’s session as easing safe-haven demand persisted amid hopes the Israel-Iran ceasefire will hold.
However, the greenback slipped after reports emerged that US President Donald Trump may announce his preferred candidate for Federal Reserve Chair earlier than expected, with USD investors raising concerns that he might undermine the independence of the US central bank by picking a close ally.
Looking ahead, the latest US durable goods orders data will be closely watched. A stronger-than-expected reading could help the US dollar recover lost ground.
Canadian dollar (CAD) stabilises as oil prices rebound
The Canadian dollar (CAD) firmed slightly on Wednesday as a modest recovery in oil prices offered the commodity-linked currency some much-needed support.
Oil market trends will likely remain the key driver for the ‘loonie’ today. Continued gains in crude prices could lift CAD further.
Australian dollar (AUD) rises on easing geopolitical fears
The Australian dollar (AUD) advanced in overnight trade, buoyed by a broader improvement in risk sentiment as tensions in the Middle East continued to ease.
New Zealand dollar (NZD) climbs on improved market mood
The New Zealand dollar (NZD) also gained ground overnight, supported by a strengthening risk-on tone across global markets.
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