US dollar supported by better-than-expected jobless claims

Australian dollar (AUD) wavers amid signs of rising unemployment

On Thursday, the Australian dollar (AUD) initially firmed against its peers as the latest unemployment rate came in below forecasts.

While March’s rate printed at 3.8%, below expectations of a 3.9% reading, it still marked a rise from February’s levels. However, as the day continued, AUD levelled off against its peers amid concerns that unemployment could increase in the coming months.

Risk appetite is likely to be the primary driver of movement for the ‘Aussie’ today, as domestic data releases thin out ahead of the weekend.

New Zealand dollar (NZD) fades despite upbeat trading conditions

Owing to an upbeat market mood, the risk-sensitive New Zealand dollar (NZD) began yesterday’s session on firm footing.

However, the ‘kiwi’ was unable to maintain its advantage due to an absence of impactful data releases, leaving it to trim its gains.

With data remaining thin on the ground, NZD may continue to trade sideways throughout today’s session.

Pound (GBP) listless amid light data calendar

Amid a lull in data releases, the pound (GBP) endured muted trade over the course of Thursday’s session.

Additionally, analysis of dovish remarks from Bank of England (BoE) Governor Andrew Bailey applied additional pressure. Bailey’s assertions that inflation remained on a downward trend prompted adjusted interest rate cut bets, capping GBP’s movements.

This afternoon, the pound could stage a recovery if the latest UK retail sales data shows a 0.3% improvement as forecast.

Euro (EUR) softens following dovish ECB remarks

Following dovish remarks from European Central Bank (ECB) Vice-President Luis de Guindos, the euro (EUR) remained flat yesterday.

In a speech, de Guindos stated that the case for a June rate cut was becoming more persuasive. As investors ramped up bets on such a move, EUR struggled to gain traction.

German PPI for March is expected to print at 0% this afternoon, which could undermine the common currency through today’s European session.

US dollar (USD) supported by robust employment data

Forecast-beating jobless claims data underpinned the US dollar (USD) yesterday, as claims held at 212,000 rather than rising.

Additionally, hawkish comments from Federal Reserve official Michelle Bowman further supported USD. In a speech, Bowman commented that there was little need to cut interest rates just yet.

Following this morning’s speech from Fed official Raphael Bostic, the ‘greenback’ could see volatile trade today.

Canadian dollar (CAD) underpinned by steadying oil trade

The crude-linked Canadian dollar (CAD) remained afloat yesterday, as oil prices began to stabilise over the session.

As data remains hard to come by today, the ‘loonie’ may continue to move in line with oil prices. Should they resume fading, CAD may soften.

Data releases

April 19th 16:00 EUR German PPI (Mar)                                                  0%

April 19th 16:00 GBP Retail Sales (Mar)                                                  0.3%