US dollar fluctuates in anxious trade

Pound (GBP) uncertain in absence of data

The pound (GBP) moved without a clear trajectory yesterday amid a lack of UK economic data.

While GBP rose against its weaker rivals, the increasingly risk-sensitive currency faced pressure elsewhere amid a downbeat market mood.

With tomorrow’s Bank of England (BoE) interest rate decision looming, Sterling could be quiet today.

Euro (EUR) capped by USD rebound

The euro (EUR) rose against its weaker peers yesterday, as Germany’s ZEW economic sentiment index beat forecasts to jump to its highest level in over five years.

However, EUR struggled to hold its gains against stronger rivals due to its negative correlation with a rebounding US dollar (USD).

Today, European Central Bank (ECB) Vice-President Luis de Guindos is due to speak. If he strikes a dovish tone or raises concerns about the impact of US tariffs on the Eurozone economy, EUR could face pressure.

US dollar (USD) wavers higher amid souring mood

The US dollar was volatile yesterday, with the currency suffering sudden losses at the start of the European session.

However, USD was able to rebound in the afternoon, with a risk-off market mood providing the currency with safe-haven flows.

USD exchange rates may be muted today as investors await the Federal Reserve’s policy announcement this evening. If the Fed raises concerns about a possible US recession, the ‘greenback’ could decline.

Canadian dollar (CAD) unclear despite accelerating inflation

The Canadian dollar (CAD) wavered yesterday, with an uptick in Canadian inflation failing to provide the currency with lasting gains.

With Canadian data absent from the calendar today, oil price movements could drive the crude-linked ‘loonie’.

Australian dollar (AUD) slips as risk appetite falters

The Australian dollar (AUD) was flat overnight amid a muted market mood, although risk aversion has seen it stumble this morning.

New Zealand dollar (NZD) drops in downbeat trade

Likewise, the New Zealand dollar (NZD) traded sideways last night but has fallen amid a risk-off mood at the start of the European session.

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