Daily Currency Update

USD - US Dollar

Financial markets are shifting towards safer investments on the final trading day of the week due to escalating Middle East tensions raising investor concerns. US stock index futures have fallen, indicating a wary mood, but the US Dollar Index has held firm above 106.00, supported by its status as a safe haven. The USD's robustness was further confirmed on Thursday by higher-than-expected regional inflation figures from the Philadelphia Fed Manufacturing Survey and steady jobless claims, suggesting ongoing inflationary pressures. With no significant US economic data releases today, attention is likely to stay on geopolitical events.

CAD - Canadian Dollar

The CAD is demonstrating resilience, rebounding to the high 1.37’s this morning after overnight declines caused by escalating geopolitical tensions. The loonie is gaining support from rising crude oil prices, which surged following reports of Israeli missile strikes on a site in Iran. This incident has heightened fears of potential disruptions in Middle East oil supplies, leading to increased oil prices and offering some support to the CAD.  Observe USD/CAD trends. 

EUR - Euro

The EUR is managing a challenging market landscape, presently trading in the mid 1.06s after initially falling as a result of a strengthening USD. Rising tensions in the Middle East have driven investors toward traditionally safer assets, adversely affecting the EUR. As this situation develops, it could further sway market sentiment, particularly as the weekend nears, potentially dampening risk appetite.

GBP - British Pound

The GBP is steady near a five-month low of about 1.24 against the greenback, amidst a broader market trend of risk aversion. This vulnerability is amplified by geopolitical concerns and the consequent stronger USD. A recent March Retail Sales report showed no growth, highlighting how higher interest rates are affecting consumer spending. Looking ahead, the trajectory of the Pound will likely be shaped by further developments in the Middle East and market speculation about potential rate cuts.