US dollar plunges to fresh three-year low

Pound (GBP) dented by downbeat GDP

The pound (GBP) stumbled at the start of yesterday’s session after UK GDP contracted 0.3% in April, far more than forecast.

This downbeat data dented GBP exchange rates, although Sterling managed to recoup losses against its weaker peers later on.

Turning to today, UK economic data is thin on the ground. Therefore, the pound may trade without a clear trajectory.

Euro (EUR) boosted by ECB comments

The euro (EUR) strengthened yesterday, thanks to the currency’s negative correlation with a plunging US dollar (USD) and hawkish comments from some European Central Bank (ECB) officials.

ECB policymaker Isabel Schnabel said that policy is in a ‘good place’, as price growth is likely to pick up again in the medium term, while President Christine Lagarde echoed these comments.

Some downbeat data from the Eurozone could pressure the common currency today, with economists expecting to see a narrowing trade surplus and a 1.3% decline in industrial production in April.

US dollar (USD) collapses on tariff woes and Fed bets

The US dollar plummeted to a three-year low yesterday amid renewed concerns that the Trump administration’s tariff policy would be bad for the US economy.

These losses were reinforced later in the session as higher-than-forecast jobless claims and softer factory-gate inflation fuelled bets on a July interest rate cut from the Federal Reserve.

The safe-haven ‘greenback’ managed to bounce back overnight, as Israel’s attack on Iran sparked widespread risk aversion. If tensions continue to rise today, USD could continue to trend higher.

Canadian dollar (CAD) mixed despite weaker oil prices

The crude-linked Canadian dollar (CAD) was mixed yesterday, with the currency avoiding losses despite falling oil prices.

With oil prices surging today following Israel’s attack on Iranian nuclear facilities, the Canadian dollar is strengthening.

Australian dollar (AUD) slumps amid risk-off mood

The Australian dollar (AUD) plunged overnight as the worsening crisis in the Middle East saw anxious investors shun the risk-sensitive ‘Aussie’.

New Zealand dollar (NZD) slides amid souring mood

Likewise, the risk-sensitive New Zealand dollar (NZD) dropped last night amid the souring market mood.

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