Pound (GBP) left adrift amid lull in data
The pound (GBP) traded without a strong directional bias yesterday, amid the continued absence of any UK data of note.
While the appreciation of many of its peers placed pressure on GBP exchange rates, Sterling’s losses were tempered by the current optimism surrounding the UK economy.
UK economic data remains absent today, which may leave the pound to continue to trade without direction.
Euro (EUR) pressured by German unemployment figures
The euro (EUR) ticked lower on Wednesday, following the release of Germany’s latest unemployment figures.
While the unemployment rate remained unchanged, the number of unemployed people jumped by 34,000, the largest monthly increase since July 2022 and propelling the total number of people out of work to nearly three million.
In the absence of any notable Eurozone economic releases today, the direction of the euro may be determined by any reports regarding the progress of EU-US trade talks.
US dollar (USD) surges following court ruling on tariffs
The US dollar (USD) wavered through yesterday’s European session in advance of this month’s FOMC minutes, which confirmed the Federal Reserve has adopted a ‘wait and see’ approach to monetary policy.
USD exchange rates then surged overnight, after a US federal court ruled that US President Donald Trump had exceeded his authority in unilaterally imposing sweeping reciprocal tariffs.
This afternoon sees the publication of the latest US GDP figures. The latest estimate of growth is expected to confirm a 0.3% contraction in Q1. If the print matches or, worse, falls below forecasts, it could revive recession worries and weigh heavily on the US dollar.
Canadian dollar (CAD) underpinned by rising oil prices
The Canadian dollar (CAD) rallied yesterday, with the commodity-linked currency rising in tandem with oil prices.
If oil prices continue to appreciate, the ‘loonie’ may extend these gains today.
Australian dollar (AUD) buoyed by positive risk flows
The Australian dollar (AUD) trended broadly higher overnight on Wednesday as the blocking of Trump’s tariffs cheered markets, making the risk-sensitive ‘Aussie’ more appealing to investors.
New Zealand dollar (NZD) slumps as business confidence sinks
The New Zealand dollar (NZD) slumped in overnight trade as NZD investors were spooked by another sharp drop in domestic business confidence this month.
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