GBP/USD Struggles Ahead of US CPI Report
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GBP/USD edges lower to 1.2930 as investors await the release of US consumer inflation data. Concerns about a US economic slowdown and ongoing trade policy uncertainty under the Trump administration continue to weigh on the US dollar. However, stronger-than-expected JOLTS job openings data offered some support. Meanwhile, market sentiment surrounding the Fed's potential rate cuts and the Bank of England's cautious approach to monetary policy are adding volatility to sterling. Today's US CPI data will be pivotal in driving GBP/USD movements.
AUD/JPY Rallies on Risk-off Sentiment
AUD/JPY strengthened near 93.38 as risk aversion and concerns over China's economic situation impacted the Australian dollar. China's introduction of retaliatory tariffs in response to US tariff hikes weighed heavily on the Aussie. Domestic data showed a 4% rise in the Westpac–Melbourne Institute Consumer Sentiment Index, although business confidence declined, dampening market sentiment. The Australian Prime Minister's comments on tariffs and the Reserve Bank of Australia's cautious stance added to the uncertainty. Global trade and Trump's potential tariffs on Japan will influence AUD/JPY in the coming days.
EUR/USD Buoyed Despite Trade Fears
EUR/USD rose to 1.0912, boosted by optimism surrounding the EU's €800 billion defence investment plan. This initiative, coupled with increased fiscal stimulus and joint borrowing by the EU, strengthened the euro. Positive economic data, including increased investor confidence and industrial output, further supported the shared currency. Weakened US job data and trade concerns stemming from President Trump's tariff threats weighed on the US dollar. Upcoming speeches from ECB President Lagarde and US CPI data will be critical for EUR/USD in the near term.
NZD/USD Struggles Ahead of US CPI Report
NZD/USD dipped near 0.5709, with the New Zealand dollar under pressure from global economic uncertainty and rising trade tensions. China's deflationary pressures, retaliatory tariffs on US goods, and the potential escalation of the US-China trade war added to the Kiwi's struggles. While stronger-than-expected US job data offered some support to the greenback, concerns over a US economic slowdown and Fed rate cuts continued to influence the market. The February CPI data and global trade developments will be key in shaping NZD/USD's movements.
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