Pound (GBP) slides despite impressive GDP figures
The pound (GBP) retreated against most of its peers yesterday, despite a stronger-than-forecast UK GDP print.
While a 0.5% expansion of growth in February smashed expectations, it was not enough to offset a trimming of Bank of England (BoE) interest rate hike bets.
UK economic releases are in short supply today, which may leave Sterling to trade without strong directional bias today.
Euro (EUR) subdued amid European energy concerns
The euro (EUR) was muted on Thursday as the International Energy Agency (IEA) warned that Europe only has around six months of jet fuel left.
This raised concerns about the potential impact on Europe’s tourism sector during the vital summer months.
Eurozone economic releases are in short supply today, which may leave the euro to trade without strong directional bias.
US dollar (USD) strengthened by Hegseth remarks
The US dollar (USD) accelerated on Thursday, receiving a boost towards the latter end of the session following a speech from US Defense Secretary Pete Hegseth.
Hegseth struck a combative tone as he suggested the US is ready to block Iranian ports for ‘as long as it takes’ and that the US is willing to settle the conflict the ‘hard way’ if Tehran isn’t willing to accept the ‘easy way.’
Looking ahead, the US dollar may relinquish these gains today after US President Donald Trump suggested that a deal with Iran is ‘very close’.
Canadian dollar (CAD) underpinned by rising oil prices
The Canadian dollar (CAD) traded with modest support on Thursday, as it was buoyed by an uptick in oil prices.
The direction of the ‘loonie’ will likely remain tied to oil-price dynamics today, potentially leading CAD exchange rates to firm if Brent crude continues back above $100 a barrel.
Australian dollar (AUD) buoyed by RBA rate hike bets
The Australian dollar (AUD) firmed in overnight trade on Thursday amid rising bets for another interest rate hike from the Reserve Bank of Australia (RBA) next month.
New Zealand dollar (NZD) wobbles in cautious trade
The New Zealand dollar (NZD) wavered in overnight trade, with markets wary of jumping the gun on Trump’s latest remarks regarding a possible US-Iran peace deal.
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