Pound (GBP) undermined by NEET report
The pound (GBP) was subdued through yesterday’s session, following the publication of a report looking into the UK’s growing youth unemployment crisis.
The findings from the report warned of a ‘lost generation’ that risks costing the UK economy £125bn a year.
GBP investors will look to a speech by Bank of England (BoE) Governor Andrew Bailey for fresh impetus today. If his remarks raise any doubts about an interest rate hike in June, the pound is likely to slide.
Euro (EUR) supported by positive data
The euro (EUR) ticked higher on Thursday amid a surprise improvement in Eurozone economic sentiment this month.
After striking a five-year low in April, morale showed signs of improving in May, despite ongoing concerns over the situation in the Middle East.
Coming up, Germany will publish its latest CPI figures later today, with the euro likely to extend its positive trajectory if rising inflation in the Eurozone’s largest economy strengthens European Central Bank (ECB) interest rate hike bets.
US dollar (USD) gains trimmed by GDP miss
The US dollar (USD) opened yesterday’s session on strong footing amid a rise in safe-haven demand as the US and Iran launched fresh strikes at one another.
However, the ‘greenback’ subsequently erased most of these gains after data showed the US economy expanded at a slower pace than previously estimated in the first quarter of the year.
Turning to today’s session, with US data in short supply, the focus for USD investors is likely to return to the situation in the Middle East, where fresh hopes for a peace deal could weigh on the US dollar.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Thursday as the currency was supported by a rebound in oil prices.
Looking ahead, the ‘loonie’ may close this week’s session on a sour note if Canada’s latest GDP figures show growth remained anaemic in the first quarter of 2026.
Australian dollar (AUD) muted as RBA rate hike bets continue to weaken
The Australian dollar (AUD) traded sideways through Friday’s Asian trading session as a continued reduction in Reserve Bank of Australia (RBA) rate hike expectations dragged on the currency.
New Zealand dollar (NZD) buoyed by RBNZ Breman comments
The New Zealand dollar (NZD) ticked higher in overnight trade, buoyed by remarks from Reserve Bank of New Zealand (RBNZ) Governor Anna Breman who suggested that interest rates are likely to rise sooner and faster than previously signalled.
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