Australian dollar (AUD) mixed amid uneven mood
The Australian dollar (AUD) initially slumped yesterday as market sentiment crumbled amid fresh tensions in the Middle East.
However, the ‘Aussie’ was able to mount a convincing recovery overnight as a pullback in the US dollar (USD) helped revive risk appetite.
In the absence of any notable Australian economic indicators, expect movement in AUD to be tied to market risk dynamics today.
New Zealand dollar (NZD) fluctuates following 2026 budget
The New Zealand dollar (NZD) also traded in a wide range on Thursday amid the shifting market mood and publication of New Zealand’s annual budget.
Much like its antipodean cousin, the ‘kiwi’ is likely to remain highly sensitive to market sentiment today, potentially giving ground again if the mood remains cautious.
Pound (GBP) undermined by NEET report
The pound (GBP) was subdued through yesterday’s session, following the publication of a report looking into the UK’s growing youth unemployment crisis.
The findings from the report warned of a ‘lost generation’ that risks costing the UK economy £125bn a year.
GBP investors will look to a speech by Bank of England (BoE) Governor Andrew Bailey for fresh impetus today. If his remarks raise any doubts about an interest rate hike in June, the pound is likely to slide.
Euro (EUR) supported by positive data
The euro (EUR) ticked higher on Thursday amid a surprise improvement in Eurozone economic sentiment this month.
After striking a five-year low in April, morale showed signs of improving in May, despite ongoing concerns over the situation in the Middle East.
Coming up, Germany will publish its latest CPI figures later today, with the euro likely to extend its positive trajectory if rising inflation in the Eurozone’s largest economy strengthens European
Central Bank (ECB) interest rate hike bets.
US dollar (USD) gains trimmed by GDP miss
The US dollar opened yesterday’s session on strong footing amid a rise in safe-haven demand as the US and Iran launched fresh strikes at one another.
However, the ‘greenback’ subsequently erased most of these gains after data showed the US economy expanded at a slower pace than previously estimated in the first quarter of the year.
Turning to today’s session, with US data in short supply, the focus for USD investors is likely to return to the situation in the Middle East, potentially driving fresh gains if tensions continue to rise.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Thursday as the currency was supported by a rebound in oil prices.
Looking ahead, the ‘loonie’ may close this week’s session on a sour note if Canada’s latest GDP figures show growth remained anaemic in the first quarter of 2026.
Data Releases
11:00 NZD Business Confidence (May)
18:20 GBP BoE Governor Bailey Speech
22:00 EUR German Inflation Rate (May)
22:30 CAD GDP (Q1)