Pound (GBP) steady despite BoE Bailey’s warning about risks and uncertainty
The pound (GBP) traded without strong direction yesterday, with the currency stabilising following Tuesday’s sharp selloff.
Elsewhere, Bank of England (BoE) Governor Andrew Bailey warned the UK is particularly exposed to geopolitical risks, although this appeared to have a limited impact on Sterling.
The UK’s data calendar remains quiet today, which may leave the pound exposed to wider market trends.
Euro (EUR) pressured by lack of trade deal progress
The euro (EUR) trended broadly lower yesterday amid transatlantic trade uncertainty.
While EU leaders remain optimistic about reaching a trade deal with the US by the end of the month, EUR investors appear to be growing increasingly frustrated by the lack of clear progress.
A letter from the US outlining new tariff measures with the EU is expected to reach European leaders today, with the euro poised to slide if it proposes a higher levy on EU goods.
US dollar (USD) rocked by tariff uncertainty
The US dollar (USD) traded in a wide range on Wednesday as US President Donald Trump’s latest tariff threats rattled USD investors.
Infusing further volatility into USD exchange rates were the minutes from the Federal Reserve’s latest policy meeting, as they revealed that some policymakers would be open to a July rate cut if the data supports it.
Coming up, the latest US initial jobless claims could act as a headwind for the US dollar later today as investors forecast new claims will have begun to rise again at the start of July.
Canadian dollar (CAD) pressured by oil price dip
The Canadian dollar (CAD) trended lower yesterday as demand for CAD was suppressed by a softening of oil prices.
If this downtrend in oil prices persists, the ‘loonie’ will likely remain on the defensive today.
Australian dollar (AUD) buoyed by USD weakness
The Australian dollar (AUD) firmed in overnight trade as a weakened US dollar helped to bolster the appeal of the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) edges higher amid cautious optimism
The New Zealand dollar (NZD) also appreciated overnight, albeit at a more modest pace than its antipodean cousin.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
