US dollar touches new three-year low as Senate votes on Trump tax bill
Philip McHugh July 2nd 2025 - 2 minute read
Pound (GBP) unsure amid absence of data
Movement in the pound (GBP) was uncertain yesterday as a lack of notable UK economic data left Sterling rudderless.
The prospect of a rebellion among Labour MPs over proposed welfare cuts also seemed to dampen Sterling’s appeal, as they pointed to deep divisions in the governing party.
UK economic data is thin on the ground today, potentially leaving the pound to trade without a clear trajectory once again.
Euro (EUR) recovers as inflation edges higher
Having lost ground during overnight trade, the euro (EUR) managed to recover during yesterday’s session, thanks in part to the Eurozone’s latest consumer price index.
Headline inflation edged higher in June, from 1.9% to 2% – the European Central Bank’s (ECB) target – dampening bets on an interest rate cut at this month’s meeting.
Turning to today, if Eurozone unemployment held at a record low in May, as expected, the euro could catch bids.
US dollar (USD) briefly hits fresh three-year low
The US dollar (USD) touched a fresh three-year low yesterday, as investors remain unnerved by Donald Trump’s ‘big beautiful bill’, which could add an estimated $3.3 trillion to the US national debt.
The ‘greenback’ managed to claw back some losses in the afternoon thanks to slightly better-than-forecast US data, including an unexpected rise in job openings in May.
The latest ADP employment change figures could impact USD today, with an expected acceleration in employment growth potentially lending the US dollar some support.
Canadian dollar (CAD) slips despite rising oil prices
The crude-linked Canadian dollar (CAD) weakened yesterday, with rising oil prices and resumed US-Canada trade talks failing to boost the currency.
Coming up, Canada’s latest manufacturing PMI could create headwinds for the ‘loonie’, as factory activity is expected to have remained in contraction last month.
Australian dollar (AUD) wavers following downbeat data
The Australian dollar (AUD) wavered overnight, with a weaker-than-forecast Ai Group industry index initially denting AUD before the currency managed to recover despite lacklustre retail sales data.
New Zealand dollar (NZD) uncertain amid lack of data
The New Zealand dollar (NZD) also traded in a narrow range last night amid a lack of data and a mixed market mood.
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Written by
Philip McHugh