Pound (GBP) rocked by ongoing uncertainty
The pound (GBP) continued to face headwinds yesterday amid persistent political uncertainty in the UK.
Prime Minister Keir Starmer had appeared to fend off an immediate leadership challenge. However, rumours that Health Secretary Wes Streeting was preparing to resign and trigger a contest over the coming days kept GBP on the back foot.
While the UK’s GDP figures showed healthy economic growth at the start of this year, political jitters could drown out the positive data. If Streeting resigns and launches a leadership challenge, Sterling is likely to slide.
Euro (EUR) remains pressured by USD strength
The euro (EUR) weakened yesterday as the common currency suffered from its strong inverse trading relationship with the rising US dollar (USD).
Meanwhile, lacklustre Eurozone economic data left the euro lacking support.
A speech from European Central Bank (ECB) President Christine Lagarde could impact EUR today. Any signals that an interest rate hike is on the way could lift the common currency.
US dollar (USD) firms amid Fed expectations
The US dollar extended its upside yesterday as the latest producer price index showed a surge in factory gate inflation in April.
This supported bets that the Federal Reserve could potentially raise interest rates by the end of the year.
Turning to today, the latest US retail sales figures are in focus. Could a slowdown in sales dampen USD demand?
Canadian dollar (CAD) supported by rising oil prices
The crude-linked Canadian dollar (CAD) rose against its weaker rivals yesterday as climbing oil prices underpinned the currency.
With Canadian data still absent from the calendar today, crude prices could remain the key driver of CAD movement, potentially offering the ‘loonie’ support if prices rise again.
Australian dollar (AUD) choppy as risk appetite wobbles
The Australian dollar (AUD) wavered overnight as a mixed market mood left the ‘Aussie’ without a clear trajectory.
New Zealand dollar (NZD) mixed amid uncertain trade
The New Zealand dollar (NZD) also moved without a clear directional bias overnight amid the uncertain mood and a lack of fresh data.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
