The Pound was trading near the 1.40 level against the Euro on Thursday as concerns over Greece boosted demand for safe-haven assets. Against the US Dollar, Sterling strengthened to 1.58 as the Federal Reserve lowered both its growth forecast and interest rate projections. The Pound could make further gains if the latest British retail sales figures come in positively.

US Dollar

The US Dollar weakened against the majority of it most traded peers after the Federal Reserve lowered both its growth and interest rate forecasts. Fed Chair Janet Yellen said that she wanted to see ‘more decisive evidence’ that the world’s largest economy is growing strongly before a interest rate rise will be warranted.

The Euro

The Euro remained under pressure against the bulk of its major peers due to rising concerns over a possible Greek default and exit from the Eurozone. Both the Athens’ government and its creditors continue to insult the other so a deal is likely to remain elusive.

Australian Dollar

The ‘Aussie’ surged higher against most of its major peers after US Federal Reserve policymakers were dovish in their latest policy meeting. The currency could make further gains later in the session if US inflation data also disappoints.

New Zealand Dollar

The New Zealand Dollar tumbled overnight following the release of worse-than-forecast domestic GDP data. According to Statistics New Zealand, the national economy expanded by just 0.2% in the first three months of the year. On an annual basis, the economy grew by 2.6%. As Thursday’s session got underway the ‘Kiwi’ rallied slightly due to the dovish US Federal Reserve policy statement.

Canadian Dollar

The ‘Loonie’ softened against the Pound and several other peers after oil prices dipped. The value of oil fell after US government data showed that inventories in the US increased last week. Further price falls were restrained however, by the ongoing conflicts in the Middle East and a weaker US Dollar.