US dollar falls and euro rises amid Russia-Ukraine peace hopes
Philip McHugh February 14th 2025 - 2 minute read
Pound (GBP) climbs as GDP beats forecasts
The pound (GBP) rose yesterday following better-than-expected UK GDP figures.
The British economy expanded 0.1% in the fourth quarter of 2024, rather than contracting 0.1% as expected, easing recession fears and dampening Bank of England (BoE) interest rate cut bets.
UK data is absent from the calendar today, which could leave Sterling to trade without a clear direction.
Euro (EUR) buoyed by Ukraine peace hopes
The euro (EUR) firmed against many of its rivals yesterday as the prospect of a peace agreement between Ukraine and Russia supported the single currency.
However, EUR trimmed its gains as the session unfolded, with a larger-than-forecast contraction in Eurozone industrial production putting some pressure on EUR.
The latest estimate for Eurozone GDP growth in the fourth quarter could impact EUR today, particularly if it deviates from the first estimate. Otherwise, Ukraine news could determine movement in the euro.
US dollar (USD) dented by improving market mood
The US dollar (USD) fluctuated lower yesterday as hopes for peace in Ukraine cheered markets and deprived USD of safe-haven flows.
With Donald Trump pushing for peace, both Kyiv and Moscow showed a willingness to participate in negotiations.
Looking ahead, the latest US retail sales figures are in focus for USD investors. Could a contraction in sales last month see the US dollar stumble?
Canadian dollar (CAD) fluctuates in tandem with oil
The Canadian dollar (CAD) fluctuated yesterday as choppy oil prices impacted the crude-linked ‘loonie’.
Market-moving Canadian data remains thin on the ground today. Therefore, oil price movements and tariff concerns could keep influencing CAD.
Australian dollar (AUD) rises amid risk-on trade
The Australian dollar (AUD) recovered from yesterday’s decline overnight, as a cheery mood and rising commodity prices underpinned the ‘Aussie’.
New Zealand dollar (NZD) firms as PMI beats forecasts
The New Zealand dollar (NZD) also gained ground last night, buoyed by an unexpected expansion in New Zealand manufacturing activity last month.
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Written by
Philip McHugh