Sterling fell against the dollar on Thursday, taking a breather from a recent surge that analysts attribute more to investors unwinding bearish bets than a change in the UK's economic outlook. The move came despite broad weakness in the U.S. dollar following soft inflation data.
Nigeria's government will publish a new 'scorecard' tracking poverty, income, and inequality to prove that President Bola Tinubu's controversial economic reforms are improving living standards for its citizens.
Bank of America forecasts the euro will depreciate against the Australian and New Zealand dollars, supported by a bullish outlook on industrial metals and agriculture despite headwinds from China.
Yields on eurozone government bonds, including German Bunds, pushed higher as escalating military conflict in the Middle East drove up oil prices and stoked fears of persistent inflation, potentially complicating the European Central Bank's policy path.
Most Asian currencies traded in narrow ranges, as the impact of a weaker U.S. dollar following soft inflation data was counteracted by investor caution over escalating geopolitical tensions in the Middle East. The South Korean won saw little benefit from a central bank rate hike, while the Chinese yuan held steady.
Treasury Secretary Scott Bessent announced the U.S. Mint will produce a commemorative $1 coin featuring President Donald Trump's image, a move that raises legal questions due to a law prohibiting the depiction of living persons on such coins.
The British pound gained against a broadly weaker U.S. dollar after a benign U.S. inflation report tempered expectations for an imminent Federal Reserve interest rate hike. The move was driven by dollar dynamics rather than UK-specific fundamentals.
Eurozone sovereign bond yields remained near multi-year highs as an escalation in U.S.-Iran tensions stoked fears of oil supply disruptions and a new wave of inflation. The geopolitical risk has overshadowed recent cooling inflation data, keeping pressure on fixed-income markets.
According to UBS, a Japanese government push for domestic investment is unlikely to cause significant near-term yen appreciation, as fundamental policy headwinds remain and asset allocation shifts are slow processes.
