Pound (GBP) wobbles amid profit-taking
The pound (GBP) was choppy on Thursday as a lack of data left the UK currency exposed to volatility.
Sterling initially firmed against some of its rivals as easing UK political uncertainty supported the currency. However, GBP seemed to suffer some profit-taking later in the session.
A lack of UK data today could limit the pound at the end of the week. However, Sterling may avoid losses if fading political risk continues to underpin the currency.
Euro (EUR) buoyed by German trade data
The euro (EUR) traded with modest gains overall yesterday, although the upside was somewhat bumpy.
A larger-than-forecast expansion in Germany’s trade surplus in May lent EUR support, with the country’s trade balance rising from €14.7bn to €19.1bn.
Market-moving Eurozone data is in short supply today, potentially leaving the single currency to trade without a clear trajectory.
US dollar (USD) softens amid cautious optimism
The US dollar (USD) wavered lower yesterday as renewed conflict between the US and Iran failed to lift the safe-haven ‘greenback’.
Risk appetite remained resilient despite escalating tensions in the Middle East. In addition, the Federal Reserve’s latest policy meeting minutes saw the bank take a neutral stance.
Safe-haven demand could determine the US dollar’s direction today. If sentiment improves amid hopes that the latest flare-up in the Middle East is over, the ‘greenback’ could fall.
Canadian dollar (CAD) slips as oil prices retreat
The crude-linked Canadian dollar (CAD) also weakened yesterday as oil pared some of its recent gains, with investors seeming hopeful that the latest US-Iran clashes would not derail longer-term plans for peace.
Canada’s latest jobs report could impact CAD today, particularly if there are any surprises. Meanwhile, oil price movements could continue to influence the ‘loonie’.
Australian dollar (AUD) firms on Middle East hopes
The Australian dollar (AUD) ticked higher overnight amid hopes that the latest clashes between the US and Iran could end soon and both sides may return to diplomacy.
New Zealand dollar (NZD) climbs as sentiment improves
The New Zealand dollar (NZD) rose to fresh multi-week highs last night, with a risk-on market mood helping the ‘kiwi’ build on its recent gains.
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