Pound (GBP) choppy amid wider market trends
The pound (GBP) traded without a clear direction yesterday amid an ongoing lack of UK economic data.
This left Sterling exposed to wider market volatility, causing some erratic movement in the pound.
Sterling ends the week with UK data still absent from the calendar. As a result, GBP exchange rates could remain rudderless.
Euro (EUR) strengthens on USD correlation
The euro (EUR) benefitted from its strong negative correlation with the US dollar (USD) yesterday.
Despite a lack of Eurozone data, the common currency was able to capitalise on a sharp retreat in the American currency.
Today, EUR investors will be paying attention to Germany’s latest inflation reading. If inflation in the Eurozone’s largest economy eased this month, bets on more policy loosening from the European Central Bank (ECB) could undermine EUR.
US dollar (USD) slumps amid economic concerns
The US dollar slumped yesterday, shedding the gains it made following the federal court’s ruling that Donald Trump’s tariff plan was unlawful.
A risk-on mood initially pressured USD before downbeat data triggered a steeper drop. Although American first-quarter GDP shrank less than expected, a surprise slump in corporate profits and rising jobless claims both weighed on USD.
The Federal Reserve’s preferred measure of inflation – the core PCE price index – is in the spotlight today. Could a slight cooling of inflation boost Fed rate cut bets and pull USD lower?
Canadian dollar (CAD) weakens alongside US dollar
The Canadian dollar (CAD) traded in tandem with its US counterpart yesterday, with softening oil prices adding to the crude-linked currency’s decline.
Turning to today, Canada’s latest GDP growth rate is the focus for CAD investors. The Canadian economy is forecast to have slowed in the first quarter of 2025, which could weigh on the ‘loonie’.
Australian dollar (AUD) slips as retail sales disappoint
The Australian dollar (AUD) retreated in overnight trade after Australia’s latest retail sales figures reported an unexpected contraction in sales growth last month.
New Zealand dollar (NZD) undermined by cautious mood
The New Zealand dollar (NZD) also stumbled during today’s Asian session as a cautious mood saw investors shy away from the risk-sensitive currency.
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