Australian dollar (AUD) unable to sustain support from jobs data
The Australian dollar (AUD) got off to a positive start yesterday, supported by broadly positive domestic jobs data.
However, the ‘Aussie’ then relinquished the bulk of these gains through the European session amid a negative shift in market sentiment.
Expect AUD exchange rates to remain sensitive to market risk appetite through the remainder of the week, with further weakness likely if the mood remains cautious.
New Zealand dollar (NZD) slips in risk-off trade
The New Zealand dollar (NZD) was also pressured through Thursday’s session as market sentiment soured.
Like its antipodean cousin, the ‘kiwi’ will continue to be influenced by market risk appetite today.
Pound (GBP) slides despite impressive GDP figures
The pound (GBP) retreated against most of its peers yesterday, despite a stronger-than-forecast UK GDP print.
While a 0.5% expansion of growth in February smashed expectations, it was not enough to offset a trimming of Bank of England (BoE) interest rate hike bets.
UK economic releases are in short supply today, which may leave Sterling to trade without strong directional bias.
Euro (EUR) subdued amid European energy concerns
The euro (EUR) was muted on Thursday as the International Energy Agency (IEA) warned that Europe only has around six months of jet fuel left.
This raised concerns about the potential impact on Europe’s tourism sector during the vital summer months.
In the absence of any notable Eurozone economic indicators, the euro is likely to be driven by wider markets trends today.
US dollar (USD) strengthened by Hegseth remarks
The US dollar accelerated on Thursday, receiving a boost towards the end of the session following a speech by US Defence Secretary Pete Hegseth.
Hegseth struck a combative tone as he suggested the US is ready to block Iranian ports for ‘as long as it takes’ and that the US is willing to settle the conflict the ‘hard way’ if Tehran isn’t willing to accept the ‘easy way.’
If US-Iran tensions continue to flare, expect the US dollar to remain in demand through the remainder of the week.
Canadian dollar (CAD) underpinned by rising oil prices
The Canadian dollar (CAD) traded with modest support on Thursday, as it was buoyed by an uptick in oil prices.
The direction of the ‘loonie’ will likely remain tied to oil-price dynamics today, potentially leading CAD exchange rates to firm if Brent crude continues back above $100 a barrel.