Pound (GBP) subdued following ministerial resignation
The pound (GBP) struggled to attract support on Thursday, following the sudden resignation of UK Defence Secretary John Healey.
Healey’s resignation over new defence spending plans piles even more pressure on Prime Minister Keir Starmer and makes his replacement seem even more inevitable.
Kicking off today’s session was the publication of the UK’s latest GDP figures, with the pound facing headwinds after April’s figures reported a 0.1% contraction in growth.
Euro (EUR) steady as ECB raises rates
The euro (EUR) was stable yesterday in the wake of the European Central Bank’s (ECB) latest interest rate decision.
While the ECB tightened monetary policy for the first time in a year, the 25bps hike had been priced in by investors well ahead of time, leading to only a modest response to the bank’s upwardly revised inflation forecasts.
In the absence of any notable Eurozone economic releases, movement in the euro may be driven by wider market trends today.
US dollar (USD) plunges as Trump claims peace deal agreed
The US dollar (USD) initially caught bids again on Thursday as US President Donald Trump threatened to hit Iran ‘very hard’ and to seize Kharg Island, Iran’s primary oil export hub.
However, USD slumped after Trump walked back on these threats, claiming that the US and Iran had agreed a peace deal and would sign it in the coming days.
Today, an expected uptick in the University of Michigan’s latest US consumer sentiment index could lift the US dollar. Meanwhile, Middle East news may drive volatility.
Canadian dollar (CAD) softens as oil prices retreat
The Canadian dollar (CAD) trended lower on Thursday, with demand for the commodity-linked currency being undermined by retreating oil prices.
Expect movement in the ‘loonie’ to remain tied to oil price dynamics today, with a further weakening of prices likely to drag on CAD.
Australian dollar (AUD) retreats despite upbeat trade
The Australian dollar (AUD) trended slightly lower during overnight trade, despite a risk-on mood, as the ‘Aussie’ trimmed its gains after rallying yesterday evening.
New Zealand dollar (NZD) relinquishes gains as PMI disappoints
The New Zealand dollar (NZD) also stumbled overnight, having enjoyed a sharp rise yesterday evening, as profit-taking and a weak manufacturing PMI chipped away at NZD’s gains.
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