Pound (GBP) steady as UK bond yields edge higher
The pound (GBP) traded in a narrow range yesterday, as uncertainty surrounding the US-Iran ceasefire triggered a renewed rise in UK gilt yields.
Although yields remained below the highs seen in late March, the uptick still raised concerns about the potential cost to the UK government should it be forced to introduce additional energy support later this year.
With little in the way of UK economic releases today, broader market sentiment is likely to be the main driver of movement in the pound.
Euro (EUR) uplift limited by mixed German figures
The euro (EUR) pushed higher on Thursday, supported in part by its inverse relationship with the US dollar (USD).
However, the single currency’s advance was restrained by uneven German data, which showed exports recovering but industrial production unexpectedly declining.
EUR investors may look to comments from the European Central Bank’s Vice-President for direction today. A more hawkish tone could help the euro close the week on firmer footing.
US dollar (USD) weighed down by GDP downgrade
The US dollar came under pressure yesterday, following final GDP data which revised growth in the last quarter of 2025 down to just 0.5%.
Despite this, losses for the ‘greenback’ were contained as lingering concerns over the ‘fragile’ US-Iran ceasefire encouraged investors to hold onto the safe-haven currency.
Attention now turns to the latest US consumer price index release. A stronger-than-expected inflation reading could boost the US dollar if it prompts markets to reassess the outlook for Federal Reserve policy.
Canadian dollar (CAD) supported by rising oil prices
The Canadian dollar (CAD) edged up on Thursday, underpinned by a rebound in oil prices amid renewed geopolitical tensions in the Middle East.
Today, Canada’s latest labour market report will be closely watched, with the ‘loonie’ potentially coming under pressure if unemployment rose again in March.
Australian dollar (AUD) slips on ceasefire uncertainty
The Australian dollar (AUD) fell in overnight trade on Thursday, as renewed doubts over the durability of the US-Iran ceasefire dampened demand for risk-sensitive currencies.
New Zealand dollar (NZD) declines amid manufacturing slowdown
The New Zealand dollar (NZD) also moved lower overnight, pressured by cautious market sentiment and a weakening in New Zealand’s latest manufacturing PMI data.
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