Pound (GBP) directionless after GDP release
The pound (GBP) lacked clear momentum yesterday, though it edged higher against some weaker counterparts following the UK’s latest GDP release.
While the final figures confirmed only minimal growth in the fourth quarter, the annual growth rate was nudged up slightly from 1.3% to 1.4%.
Looking ahead, Sterling could face some headwinds today if the UK’s final manufacturing PMI for March confirms a cooling in factory activity.
Euro (EUR) rangebound despite inflation rise
The euro (EUR) also struggled to find a firm direction yesterday after the Eurozone’s preliminary consumer price index for March came in just below expectations.
Headline inflation climbed from 1.9% to 2.5%. However, this was marginally below the 2.6% forecast, leaving uncertainty around a potential European Central Bank (ECB) rate increase in April and keeping EUR subdued.
Attention now turns to the Eurozone’s final manufacturing PMI. Any revision from the preliminary estimate could drive movement in the single currency.
US dollar (USD) softens as peace optimism grows
The US dollar (USD) saw choppy trading yesterday but ultimately drifted lower, with some investors appearing to take profits.
An uplift in market sentiment also weighed on the safe-haven ‘greenback’, after US President Donald Trump suggested the conflict with Iran could conclude within ‘two weeks, maybe three’.
Today, USD may come under pressure if the latest ADP employment change report points to weaker hiring. However, a rebound in US retail sales for February could help the currency recover later in the session.
Canadian dollar (CAD) slides as oil prices fall
The oil-sensitive Canadian dollar (CAD) weakened sharply yesterday, tracking a notable decline in crude prices.
Today’s Canadian manufacturing PMI may add further pressure, with forecasts pointing to a contraction in factory activity during March.
Australian dollar (AUD) supported by improved sentiment
The Australian dollar (AUD) edged higher overnight, buoyed by a stronger risk environment following Trump’s remarks on the Iran conflict.
New Zealand dollar (NZD) lifted by risk-on mood
The New Zealand dollar (NZD) also advanced overnight as investors showed a greater appetite for riskier 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.