Pound (GBP) pressured by NEET report
The pound (GBP) struggled for support through yesterday’s session after a new report highlighted the UK’s worsening youth unemployment problem.
The study warned the UK faces the threat of a ‘lost generation’, with the economic impact estimated to cost the country £125bn annually.
GBP investors will turn their attention to a speech from Bank of England (BoE) Governor Andrew Bailey today. Should his comments cast doubt on a June interest rate hike, Sterling may come under fresh pressure.
Euro (EUR) lifted by upbeat sentiment figures
The euro (EUR) edged higher on Thursday following an unexpected improvement in Eurozone economic confidence this month.
After tumbling to a five-year low in April, sentiment showed signs of recovery in May despite persistent worries surrounding developments in the Middle East.
Looking ahead, Germany’s latest inflation figures are due later today, with the euro potentially extending its gains if stronger price growth reinforces expectations for European Central Bank (ECB) monetary tightening.
US dollar (USD) pares gains after weaker GDP data
The US dollar (USD) began Thursday’s session on solid footing as renewed clashes between the US and Iran boosted demand for safe-haven assets.
However, the ‘greenback’ later surrendered much of these advances after revised figures showed the US economy grew more slowly than previously forecast in the first quarter.
Turning to today, with little in the way of notable US data releases, USD movement is likely to remain tied to developments in the Middle East, where renewed optimism over a possible peace agreement could pressure the US dollar.
Canadian dollar (CAD) supported by oil rebound
The Canadian dollar (CAD) traded broadly higher on Thursday as recovering oil prices lent support to the commodity-linked currency.
Looking ahead, the ‘loonie’ may end the week on weaker footing if Canada’s latest GDP release reports that economic growth remained sluggish in the first quarter of 2026.
Australian dollar (AUD) subdued as RBA hike expectations fade further
The Australian dollar (AUD) moved sideways through Friday’s Asian session as fading expectations for additional Reserve Bank of Australia (RBA) rate hikes continued to weigh on the currency.
New Zealand dollar (NZD) strengthened by Breman remarks
The New Zealand dollar (NZD) edged higher in overnight trade after comments from Reserve Bank of New Zealand (RBNZ) Governor Anna Breman suggested interest rates may rise earlier and more aggressively than previously indicated.
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