US dollar slumps as Trump delays tariffs

Pound (GBP) mixed amid lack of data

The pound (GBP) faced uncertain trade on Thursday as a lack of UK data left the currency exposed to wider market trends.

This saw Sterling rally against its weaker peers while sliding against stronger rivals.

GBP exchange rates may bounce back today, after data showed that UK GDP jumped by 0.5% in February, versus forecasts for a much more modest 0.1% expansion.

Euro (EUR) strengthens amid EU-US trade hopes

The euro (EUR) enjoyed a strong session yesterday amid hopes that the EU may be able to secure a favourable trade deal with the US during the 90-day tariff delay.

In addition, the common currency benefitted from its strong negative correlation with the US dollar (USD), which suffered notable losses.

Looking ahead, European Central Bank (ECB) President Christine Lagarde is due to speak later this morning. If she raises concerns about how US tariffs could impact the Eurozone economy, EUR may weaken.

US dollar (USD) slumps amid Trump tariff U-turn

The US dollar took a tumble yesterday after Trump backtracked on his planned tariffs. Not only did this cheer markets, depriving USD of safe-haven flows, it also raised further concerns about the credibility and consistency of US trade policy.

The ‘greenback’ then faced further losses in the afternoon following the latest US consumer price index. The CPI figures showed that US inflation cooled more than expected last month, thereby boosting bets on a coming interest rate cut from the Federal Reserve.

This afternoon brings the latest US PPI figures and consumer sentiment index. If rising producer prices and deteriorating consumer morale fuel recession fears then USD could slide.

Canadian dollar (CAD) drops alongside oil prices

The crude-linked Canadian dollar (CAD) fell yesterday as oil prices once again dropped below $60 per barrel.

Canadian economic data continues to be in short supply today. As a result, oil prices could drive CAD exchange rates. Could a further weakening of oil prices drag the ‘loonie’ lower?

Australian dollar (AUD) pressured by US-China trade concerns

The Australian dollar (AUD) drifted lower overnight on Thursday, after the White House confirmed that tariffs on Chinese goods are now at 145%.

New Zealand dollar (NZD) gains despite trade concerns

The New Zealand dollar (NZD) in contrast was able to maintain a broadly positive trajectory in overnight trade, despite risk sentiment being undermined by trade war fears.

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