Pound (GBP) strengthens after BoE rate announcement
The pound (GBP) rallied yesterday following the Bank of England’s (BoE) latest policy decision.
Although rates were left unchanged, the central bank indicated that persistent inflationary pressures could necessitate tighter policy later this year.
BoE Chief Economist Huw Pill is due to speak later today. As the sole policymaker to vote for a hike at the last meeting, his remarks could lend further support to Sterling.
Euro (EUR) weighed down by soft GDP reading
The euro (EUR) came under pressure at the start of Thursday’s session after the Eurozone’s latest GDP figures revealed an unexpected slowdown in first-quarter growth.
EUR sentiment remained fragile after the European Central Bank (ECB) opted to keep interest rates unchanged.
With limited Eurozone data on the calendar today, the single currency may trade without a clear direction.
US dollar (USD) pressured by weak GDP data
The US dollar (USD) saw volatile trade yesterday, initially strengthening on reports the US is considering military action against Iran.
However, the ‘greenback’ later pared these gains as market nerves eased and a weaker-than-forecast US GDP print for the first quarter was released.
Looking ahead, the US dollar could finish the week on a stronger footing if the latest ISM manufacturing PMI indicates continued expansion in the factory sector through April.
Canadian dollar (CAD) supported by elevated oil prices
The Canadian dollar (CAD), which is sensitive to oil price movements, fluctuated on Thursday as crude prices surged to a fresh four-year high before pulling back.
The ‘loonie’ is likely to remain closely tied to oil price dynamics for the rest of the session.
Australian dollar (AUD) lifted by softer USD
The Australian dollar (AUD) moved higher during today’s Asian session after a surge in the Japanese Yen (JPY) prompted a selloff in the US dollar.
New Zealand dollar (NZD) buoyed by risk-on flows
The New Zealand dollar (NZD) also strengthened overnight, with the weaker US dollar helping to improve overall market risk sentiment.
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