Daily Currency Update

USD - US Dollar

The USD has weakened slightly for the second consecutive day, distancing from recent highs. Market activity is subdued, with no strong drive to significantly move USD values amid uncertain monetary policies. Today's US economic reports include Durable Goods, housing, consumer confidence, and the Richmond Fed Manufacturing Index, with Durable Goods expected to increase by 1% (0.4% excluding transportation). Consumer confidence is anticipated to see a slight rise, while the Richmond Fed index is predicted to stay at last month's -5. Additionally, the market is attentive to a bridge collapse at Baltimore's port, a crucial gateway for specific imports to the US.

CAD - Canadian Dollar

The CAD has slightly appreciated against a weakening USD in quiet overnight trading, moving in line with the broader FX market trends and showing modest gains. BoC Senior DG Rogers will speak in Halifax, with comments released at 8:00ET, followed by an audience Q&A but no media session. Observe USD/CAD trends.

EUR - Euro

The EUR is gaining in early North American trading, recovering from the week's start at a 1.08 low and approaching half of last week's decline from the mid-1.09s, mainly due to position adjustments. Spain's Q4 GDP was confirmed at +0.6% Q/Q, aligning with initial estimates. Germany's Gfk Consumer Confidence slightly rose in April to -27.4. ECB's Muller agreed that upcoming data might allow for a policy easing in June.

GBP - British Pound

The GBP, which saw a notable increase yesterday, received further support from BoE hawk Mann's comments today. Although Mann's recent shift from favoring a hike to holding at the last BoE policy meeting initially lowered sterling, her statement today suggesting that markets might be overestimating the number of rate cuts pushed the GBP slightly higher this morning.