US dollar pulls back amid profit-taking
Philip McHugh February 12th 2025 - 2 minute read
Pound (GBP) rebounds as investors buy the dip
The pound (GBP) initially weakened yesterday before regaining ground in the afternoon.
Some dip-buying seemed to support Sterling after GBP struck multi-day lows against many of its peers.
This afternoon, Bank of England (BoE) policymaker Megan Greene is due to speak. Any indication that she might support further interest rate cuts could pressure the pound.
Euro (EUR) firms as USD retreats
The euro (EUR) wavered higher yesterday, with the common currency benefitting from its negative trading relationship with the retreating US dollar (USD).
However, a lack of data and ongoing concerns about the impact of US tariffs on the Eurozone economy limited EUR’s upside.
Eurozone data is thin on the ground today. As a result, movement in the euro may be mixed.
US dollar (USD) retreats as investors cash in
The US dollar retreated yesterday as some investors sought to bank their profits following the currency’s tariff-fuelled gains.
In addition, noncommittal comments from Federal Reserve Chair Jerome Powell failed to boost USD.
Today, the latest US consumer price index is in focus. Stubborn inflation could further dampen Fed rate cut bets, thereby boosting the US dollar.
Canadian dollar (CAD) softens despite rising oil prices
The crude-linked Canadian dollar (CAD) trended broadly lower yesterday, despite rising oil prices, as concerns over US tariffs on Canadian goods continued to weigh on the ‘loonie’.
With Canadian data in short supply today, oil price movements and tariff concerns could drive CAD exchange rates.
Australian dollar (AUD) choppy in absence of data
The Australian dollar (AUD) wavered overnight amid a lack of Australian data and a muted mood ahead of today’s US inflation figures.
New Zealand dollar (NZD) wobbles amid lack of data
Likewise, the New Zealand dollar (NZD) fluctuated without a clear direction last night with no clear catalyst to drive NZD movement.
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Written by
Philip McHugh