Pound (GBP) pressured by political uncertainty
The pound (GBP) remained on the back foot on Tuesday as persistent political instability in the UK continued to weigh on sentiment.
Speculation surrounding Keir Starmer’s position as Prime Minister intensified, with reports suggesting internal divisions within the Labour Party are far from resolved.
Looking to today, movement in Sterling may prove subdued as GBP investors hold fire ahead of Thursday’s key GDP release.
Euro (EUR) subdued amid thin trading
The euro (EUR) drifted within a tight range during yesterday’s session as a lack of fresh Eurozone data kept trading conditions quiet.
Although Danske Bank released a forecast suggesting the European Central Bank (ECB) will keep rates unchanged until 2027, the projection failed to generate a meaningful response from EUR traders.
With little in the way of new data, the single currency may continue to lack clear direction today.
US dollar (USD) steady despite retail sales disappointment
The US dollar (USD) moved sideways on Tuesday after weaker-than-expected retail sales figures tempered a broader rebound in US assets.
December’s report showed consumer spending flatlined, falling short of expectations for a 0.4% increase and fuelling doubts over the strength of household demand.
Attention now turns to the latest US non-farm payrolls release, with the ‘greenback’ vulnerable to losses if the figures confirm signs of softening in the labour market.
Canadian dollar (CAD) supported by firmer oil
The Canadian dollar (CAD) edged higher yesterday, as rising oil prices offered support to the commodity-linked currency.
With no major domestic releases scheduled, the ‘loonie’ is likely to remain driven by fluctuations in crude prices today.
Australian dollar (AUD) climbs on hawkish RBA comments
The Australian dollar (AUD) advanced during Wednesday’s Asian session, buoyed by hawkish commentary from Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser.
New Zealand dollar (NZD) lifted by improved risk sentiment
The New Zealand dollar (NZD) also strengthened overnight, benefiting from a pickup in broader market risk appetite.
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