Pound (GBP) uncertain amid lack of data
The pound (GBP) lacked a clear direction yesterday amid an absence of UK economic data.
While the increasingly risk-sensitive currency rose against its safer peers, it struggled elsewhere. Dashed hopes of a UK-US trade deal continued to weigh on Sterling.
Today, Sterling is on the back foot amid a risk-off market mood. With punitive new tariffs coming into effect, markets are in the red today.
Euro (EUR) pressured by risk-on mood
The euro (EUR) fell against its riskier rivals yesterday as the improving mood dampened the appeal of the safer common currency.
However, EUR was spared steeper losses thanks to its negative correlation with a weaker US dollar (USD).
In the absence of notable Eurozone data today, risk sentiment and USD movement could impact the safer euro. If the mood remains downbeat and the US dollar extends its losses, EUR could climb.
US dollar (USD) stumbles as markets recover
The US dollar faced selling pressure yesterday as a recovering appetite for risk deprived USD of safe-haven flows.
The improved mood came amid hints from the White House that they were seeking new trade deals with many of their trading partners.
Today, the US dollar is facing pressure once again as Trump’s tariffs come into force and markets fear further measures and countermeasures to come. The Federal Reserve’s meeting minutes this evening could add to USD volatility.
Canadian dollar (CAD) wobbles in tandem with oil prices
The crude-linked Canadian dollar (CAD) was choppy yesterday as fluctuating oil prices left the ‘loonie’ without a clear direction.
Oil price movements could continue to influence the Canadian dollar today. If oil begins to fall again, CAD could face pressure.
Australian dollar (AUD) bounces despite risk-off mood
The Australian dollar (AUD) initially stumbled overnight amid a souring market mood, although the ‘Aussie’ managed to rebound from its lowest levels.
New Zealand dollar (NZD) subdued as RBNZ cuts rates
The New Zealand dollar (NZD) was muted overnight as the Reserve Bank of New Zealand (RBNZ) cut interest rates and indicated that more cuts may be appropriate. However, the ‘kiwi’ managed to resist losses despite the decision.
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