US dollar slides amid recession fears

Pound (GBP) capitalises on rivals’ weakness

The pound (GBP) enjoyed some success yesterday, with GBP primarily benefiting from depreciation in rival currencies.

While increasingly hostile global trade policies are expected to hit the UK economy, the country may be less badly impacted than other nations. This allowed the pound to rise against some of its peers.

Sterling could gain ground today following a surprise expansion in UK retail sales last month. Rather than contracting 0.3%, sales growth expanded 1% in February, indicating that consumer demand may be more robust than anticipated.

Euro (EUR) buoyed by USD decline

The euro (EUR) firmed yesterday, thanks to the common currency’s strong negative correlation with the weakening US dollar (USD).

However, worries about worsening EU-US trade tensions and how tariffs could impact the Eurozone economy limited EUR’s upside.

Today brings a number of Eurozone releases, including the bloc’s latest economic sentiment index. Could deteriorating morale amid the escalating EU-US trade war drag on EUR?

US dollar (USD) dented by tariff concerns

The US dollar faced selling pressure yesterday as new tariffs announced by President Donald Trump fuelled fears of a possible US recession.

The safe-haven ‘greenback’ attempted to claw back some losses amid a souring market mood, but the currency was unable to recoup its losses.

Looking ahead, all eyes are on the latest core PCE price index. If the Federal Reserve’s preferred measure of inflation ticked higher last month, USD could end the week strongly.

Canadian dollar (CAD) falls as US-Canada tensions flare

The Canadian dollar (CAD) fell yesterday as Canadian Prime Minister Mark Careny called tariffs a ‘direct attack’ and vowed to respond.

This afternoon, Canada’s latest GDP figures are sheduled for release. If the Canadian economy contracted last month then CAD exchange rates could face losses.

Australian dollar (AUD) fluctuates as market mood shifts

The Australian dollar (AUD) was volatile overnight as a shifting market mood saw the risk-sensitive ‘Aussie’ drop before rebounding.

New Zealand dollar (NZD) wavers lower amid uncertain mood

Likewise, the New Zealand dollar (NZD) fell last night before clawing back some losses. However, it was unable to fully rebound from its initial drop.

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