Pound (GBP) weakens despite robust GDP data
The pound (GBP) fell back against most of its peers yesterday, even as the UK reported stronger-than-expected economic growth.
Although February’s GDP print showed a 0.5% expansion, comfortably beating forecasts, it failed to counter a scaling back of Bank of England (BoE) rate hike expectations.
With little UK data due today, Sterling may struggle to find clear direction and could remain rangebound.
Euro (EUR) muted amid energy supply worries
The euro (EUR) traded sideways on Thursday after the International Energy Agency (IEA) warned that Europe has only around six months’ worth of jet fuel reserves remaining.
This sparked concerns about the potential fallout for the region’s tourism industry during the crucial summer season.
With Eurozone data also limited today, the euro may continue to lack a clear trend.
US dollar (USD) lifted by hawkish rhetoric
The US dollar (USD) strengthened through Thursday’s session, gaining momentum late in the day following comments from US Defense Secretary Pete Hegseth.
Hegseth adopted a firm stance, stating the US is prepared to block Iranian ports indefinitely and warning that Washington could pursue a more forceful resolution if necessary.
Looking ahead, the US dollar could give back some of these gains after US President Donald Trump suggested a deal with Iran may be close.
Canadian dollar (CAD) supported by firmer oil prices
The Canadian dollar (CAD) edged higher on Thursday, benefiting from a rise in oil prices which boosted the appeal of the commodity-linked currency.
The ‘loonie’ is likely to remain sensitive to oil market movements today, with further gains possible if Brent crude climbs back above $100 per barrel.
Australian dollar (AUD) supported by rate hike expectations
The Australian dollar (AUD) moved higher in overnight trade on Thursday, as investors increased bets on another interest rate rise from the Reserve Bank of Australia (RBA) at its next meeting.
New Zealand dollar (NZD) unsettled in cautious markets
The New Zealand dollar (NZD) traded unevenly overnight, with investors hesitant to fully react to Trump’s latest comments on a potential US-Iran agreement.
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