US dollar stumbles as Trump revives tariff fears

Pound (GBP) limited by lack of data

The increasingly risk-sensitive pound (GBP) managed to rise against some of its weaker, safer peers yesterday as the market mood turned positive.

However, a lack of fresh data and Wednesday’s gloomy PMIs limited GBP’s potential.

Turning to today, the pound may be able to attract support as the session progresses thanks to stronger-than-expected UK retail sales in March.

Euro (EUR) weakens despite upbeat German data

The euro (EUR) struggled yesterday, despite Germany’s latest business climate index beating forecasts to show an improvement in April.

The downside came amid a risk-on shift in the market mood, paired with Germany downgrading its 2025 growth forecast to 0% due to US tariffs.

Eurozone economic data is thin on the ground today, potentially leaving the single currency to trade on risk appetite and its negative correlation with the US dollar (USD).

US dollar (USD) slips following Trump tariff comments

The US dollar faced fresh pressure on Thursday after Donald Trump said that some reciprocal tariffs announced earlier in the month would come into effect within weeks.

A surprisingly large 9.2% jump in durable goods orders failed to support USD in the afternoon, as the rise was due to a rush in orders ahead of incoming tariffs.

Confirmation of a sharp decline in consumer sentiment could pressure the US dollar later this afternoon. Elsewhere, volatility around Trump’s trade policies could continue to impact the ‘greenback’.

Canadian dollar (CAD) slips as oil prices fall

The crude-linked Canadian dollar (CAD) was down yesterday, with weaker oil prices and the decline in USD both pressuring the ‘loonie’.

Canada’s latest retail sales figures are out this afternoon. Could weak growth in March following February’s decline dent CAD exchange rates?

Australian dollar (AUD) buoyed by US-China trade hopes

The Australian dollar (AUD) rose overnight amid reports that China is considering easing some of its tariffs on US goods.

New Zealand dollar (NZD) softens despite improving mood

The New Zealand dollar (NZD) weakened last night, with the ‘kiwi’ unable to gain ground despite hopes for a de-escalation in the US-China trade war.

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