Canadian Prime Minister Mark Carney revealed he has spoken with U.S. President Donald Trump on multiple occasions recently, discussing the war in Ukraine and the conflict in Iran amid ongoing trade disputes between the two nations.
The Canadian dollar edged lower against its U.S. counterpart, as the support from oil prices above $100 a barrel was offset by investor caution ahead of key U.S. inflation data.
The British pound rose to its highest level against the U.S. dollar since late August as investors priced in multiple interest rate increases from the Bank of England by early next year.
Government bond yields across the euro area remained near their highest levels in years as investors braced for an expected European Central Bank interest rate hike, driven by a recent surge in energy-related inflation.
Most Asian currencies held steady on Thursday as investors adopted a cautious stance amid rising oil prices and Middle East tensions. The Japanese yen remained near a seven-month high on expectations of a Bank of Japan rate hike, while traders awaited key U.S. inflation data.
The British pound edged lower on Wednesday as the U.S. dollar stabilized after a recent period of weakness, with traders looking ahead to a pivotal U.S. inflation report and central bank decisions.
Citigroup analysts suggest that even a hawkish 25-basis-point rate hike from the European Central Bank this week will offer limited support for the euro, as aggressive policy tightening is already priced into the market.
Eurozone government bond yields are trading near their highest levels in over a decade, driven by a surge in energy prices that is intensifying pressure on the European Central Bank to raise interest rates this week.
The U.S. dollar slipped on Wednesday, pressured by a surging Japanese yen and oil prices nearing $100 a barrel, which allowed most other Asian currencies to post gains. Markets are now focused on upcoming U.S. inflation data and central bank meetings in the U.S. and Japan.
