Pound (GBP) fluctuates as investors take profits
The pound (GBP) experienced mixed trade on Thursday, with an absence of UK economic data leaving Sterling vulnerable to market swings.
Sterling initially strengthened against several peers as diminishing political uncertainty in the UK continued to offer support. However, the currency later surrendered those gains as investors appeared to lock in recent profits.
With no notable UK data due for release today, the pound may struggle to find fresh direction heading into the weekend. That said, Sterling could remain supported if easing political concerns continue to bolster confidence.
Euro (EUR) edges higher following German trade figures
The euro (EUR) posted modest gains overall on Thursday, although trading conditions remained uneven.
EUR drew support after Germany’s trade surplus expanded by more than expected in May, with the trade balance increasing from €14.7bn to €19.1bn.
There is little in the way of influential Eurozone data today, which may leave the single currency lacking a clear catalyst.
US dollar (USD) weakens despite Middle East tensions
The US dollar (USD) drifted lower yesterday as renewed hostilities between the US and Iran failed to generate meaningful demand for the safe-haven ‘greenback’.
Market sentiment remained relatively upbeat despite heightened tensions in the Middle East. At the same time, minutes from the Federal Reserve’s latest policy meeting struck a broadly neutral tone.
The US dollar’s performance today is likely to depend on broader market sentiment. If optimism grows on expectations that the latest Middle East escalation has passed, the ‘greenback’ may come under further pressure.
Canadian dollar (CAD) eases as oil gives back gains
The oil-sensitive Canadian dollar (CAD) weakened on Thursday as crude prices retreated from recent highs, with markets increasingly optimistic that the latest US-Iran confrontation would not disrupt longer-term peace efforts.
Canada’s latest employment figures could drive movement in CAD today, particularly if the data produces any unexpected results. Oil price fluctuations are also likely to remain an important influence on the ‘loonie’.
Australian dollar (AUD) rises on hopes of diplomatic progress
The Australian dollar (AUD) strengthened overnight as optimism grew that the latest US-Iran conflict could prove short-lived, allowing both sides to resume diplomatic efforts.
New Zealand dollar (NZD) advances as market mood improves
The New Zealand dollar (NZD) climbed to fresh multi-week highs overnight, with improving risk appetite enabling the ‘kiwi’ to extend its recent rally.
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.