Pound (GBP) finds support despite soft jobs data
The pound (GBP) managed to tick higher against its weaker rivals yesterday, despite underwhelming UK jobs data.
Unemployment unexpectedly rose in the three months to March, while wage growth slowed. However, the number of people in employment increased by a stronger-than-expected 148,000.
So far today, the pound has shrugged off a softer UK inflation print. Although price pressures eased more than expected last month, economists expect inflation to trend higher through 2026.
Euro (EUR) dips as USD rises
The euro (EUR) faced pressure yesterday as the currency’s negative correlation with the rising US dollar (USD) weighed on EUR demand.
Meanwhile, a lack of Eurozone economic data left the euro without much support.
With this morning’s German producer price index having little impact on the euro, EUR movement could remain tied to USD today.
US dollar (USD) climbs amid geopolitical tensions
The safe-haven US dollar marched higher during yesterday’s session as geopolitical concerns led to a risk-averse market mood.
US President Donald Trump warned that he may need to strike Iran again, while Tehran said it will ‘open new fronts’ of the war if American attacks resume.
If tensions in the Middle East continue to flare, the US dollar could catch bids today. Tonight’s publication of the Federal Reserve meeting minutes could also support USD, if they reveal a hawkish consensus among policymakers.
Canadian dollar (CAD) buoyed despite softer inflation
The oil-sensitive Canadian dollar (CAD) also rose yesterday as crude prices climbed, although softer-than-forecast domestic inflation figures limited CAD’s upside.
Canadian economic data is in short supply today, likely leaving the Canadian dollar to trade on crude price movements.
Australian dollar (AUD) muted amid risk-off trade
The Australian dollar (AUD) remained subdued overnight, following yesterday’s losses, as a cautious mood dampened demand for the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) suppressed by risk aversion
The New Zealand dollar (NZD) wavered overnight, as the gloomy market mood kept NZD under pressure.
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.
