USD stumbles amidst Euro rally
Daily Currency Update
The British Pound regained ground against the US Dollar following speculation that the Bank of England may pause rate changes at its June 18 meeting and delay further cuts to borrowing costs - supporting Sterling in the short term. However, any upside may be capped as traders await today’s release of US Personal Consumption Expenditure data before making decisive moves.USD dropped against most currencies as US economic data revealed that Americans filing for jobless benefits increased in the week by 14k (upto 240k), which was 11k over forecast. Additionally, the drop in Gross Domestic Product figures for Q1 2025 stunted the USD's gains and has led to much of the gains made over the last two days being wiped out. If the White House is unsuccessful in its appeal against the Trade Courts ruling, the US Customs and Border Protection Agency would then issue directions to its officers to refund the tariff payments collected.
Key Movers
EUR surged across the board as the Euro received support from easing trade tensions between the US and EU, coupled with stronger than expected German Retail sales which came out 0.5% above forecast and a court in the US ruling that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs. EUR/GBP smashed through the 0.84 mark erasing much of the Euro's losses this week and the EUR/USD rallied edging up over 0.70% on Thursday as jobs economic data from the US came in below forecast, with eyes turning to todays USD data for fresh price inputs.Expected Ranges
- GBP/USD: 1.344 - 1.35 ▼
- GBP/EUR: 1.187 - 1.192 ▲
- GBP/AUD: 2.097 - 2.105 ▲
- EUR/USD: 1.131 - 1.137 ▼