Pound (GBP) slips amid ongoing political anxiety
The pound (GBP) faced headwinds yesterday amid ongoing concerns about the Peter Mandelson scandal and the future of Prime Minister Keir Starmer as Labour leader.
With Parliament voting on whether Starmer should face an inquiry into allegations he misled MPs, political jitters saw UK borrowing costs approach highs not seen since the 2008 financial crisis.
UK data is thin on the ground today, and with the Bank of England (BoE) interest rate decision looming, Sterling may trade in a narrow range.
Euro (EUR) unsure amid inflation concerns and USD strength
The euro (EUR) was mixed yesterday, rising against its weaker peers but losing ground elsewhere.
The uncertain movement came as a sharp rise in Eurozone consumer inflation expectations boosted the euro, but a stronger US dollar (USD) dented the currency, due to EUR’s negative correlation with USD.
A forecast deterioration in Eurozone economic sentiment in April could pressure EUR today. However, a rise in German inflation could offset the downside.
US dollar (USD) firms amid fresh Middle East uncertainty
The US dollar rose yesterday as a shift to risk-off trade lifted demand for safe-haven currencies such as the ‘greenback’ amid reports that President Donald Trump is dissatisfied with Iran’s latest peace proposal.
However, USD struggled to sustain its upside and retreated in the afternoon.
Turning to today, USD could be subdued as investors brace for the Federal Reserve’s policy announcement this evening.
Canadian dollar (CAD) slips as profit-taking sets in
The crude-linked Canadian dollar (CAD) saw a brief upside yesterday morning amid rising oil prices, touching multi-week highs against some peers before falling afoul of profit-taking.
CAD investors will focus firmly on the Bank of Canada’s (BoC) interest rate decision today. While no change to policy is expected, any hints at future rate hikes could underpin the ‘loonie’.
Australian dollar (AUD) falls as inflation misses forecasts
The Australian dollar (AUD) declined overnight as Australia’s latest inflation figures came in below forecasts.
New Zealand dollar (NZD) slips following RBNZ remarks
The New Zealand dollar (NZD) also weakened during last night’s Asian trading session as Reserve Bank of New Zealand (RBNZ) Governor Anna Breman indicated that core inflation is currently stable, thereby dampening rate hike bets.
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.
