Pound (GBP) uncertain amid turbulent trade
The pound (GBP) traded in a wide range yesterday as a lack of UK economic data left the currency exposed to wider volatility.
Global markets were turbulent ahead of the Federal Reserve decision and amid geopolitical uncertainty, prompting unpredictable movement in the pound and many of its peers.
With British data still in short supply today, Sterling could struggle to find a clear directional bias.
Euro (EUR) wobbles despite USD weakness
The euro (EUR) faced choppy trade yesterday, despite encouraging comments from European Central Bank (ECB) President Christine Lagarde about the Eurozone’s growth outlook and a weaker US dollar (USD).
Despite these tailwinds, the single currency struggled against some of its peers and faced volatility as ongoing Russia-Ukraine concerns unnerved EUR investors.
Eurozone data is absent from today’s economic calendar, potentially leaving EUR to trade on geopolitical headlines. Ongoing anxiety could subdue the common currency.
US dollar (USD) plummets as Fed cuts rates
The US dollar slumped last night as the Federal Reserve delivered a widely expected interest rate cut of 25 basis points, while Fed Chair Jerome Powell gave some mixed remarks.
While Powell struck a cautious tone, saying the bank was ‘well positioned to wait’ before cutting rates again, his comments on the jobs market and tariff-related inflation led markets to increase bets on further cuts in the first half of 2026.
USD may see choppy trade today as investors continue to digest the decision. The latest initial jobless claims figure could provide fresh impetus, with a forecast rise in claims potentially weighing on the ‘greenback’.
Canadian dollar (CAD) slips following BoC decision
The crude-linked Canadian dollar (CAD) was dented by falling oil prices yesterday, while the Bank of Canada’s (BoC) latest interest rate decision failed to support the currency, with Governor Tiff Macklem maintaining a steady tone despite recent strong jobs data.
Today, Canada’s latest trade figures could impact CAD. An expected uptick in exports may reflect positively on the ‘loonie’.
Australian dollar (AUD) slides as jobs data disappoints
The Australian dollar (AUD) fell sharply overnight following Australia’s latest jobs data. A large decline in full-time employment and a drop in the participation rate weighed on AUD.
New Zealand dollar (NZD) softens in lockstep with AUD
The New Zealand dollar (NZD) also weakened overnight, as NZD was undermined by its positive correlation with AUD and a cautious market mood.
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