Services PMI Misses, Pound Sterling to Euro (GBP/EUR) and US Dollar (GBP/USD) Exchange Rates Slide
The latest survey revealed that service sector activity remained fairly subdued in April, with the services index only rising from 51.7 to 52.8, falling short of an expected rise to 53.5.
The lacklustre services index capped off what has been a slow start to the second quarter in terms of PMI releases, prompting analysts to warn that the UK economy may be in for another gloomy three months of growth. If the UK economy does struggle in the months ahead it will keep Pound Sterling (GBP) exchange rates under pressure.
GBP/EUR Exchange Rate Subdued as Eurozone Inflation Slides
The Pound Sterling to Euro (GBP/EUR) exchange rate remained on the defensive on Thursday as markets expressed concern for UK growth prospects in the second quarter.
However the Euro (EUR) struggled to take advantage of the weakness in Sterling (GBP) exchange rate as Eurozone inflation was shown to have slowed last month.
A drop from 1% to 0.7% in core inflation spooked many EUR investors as it raised further doubts over when the European Central Bank (ECB) may begin raising interest rates.
GBP/USD Exchange Rate Fluctuates as US Service Sector Slows
After falling relentlessly over the past couple of weeks, the Pound US Dollar (GBP/USD) exchange rate finally found some brief respite on Thursday as the US Dollar stumbled in face of a disappointing service PMI.
However, with the Pound’s performance was hardly impressive in light of the UK’s own services index also falling short.
The US Dollar looks to soar later today however as economists forecast today’s labour report will reveal US Payrolls rocketed in April.
GBP/CAD Exchange Rate Steady as Canadian Trade Deficit Balloons
After initially slipping on Thursday the Pound Canadian Dollar (GBP/CAD) exchange rate was able to stabilise during yesterday’s session following the release of Canada’s latest trade balance.
Figures revealed Canada’s trade deficit climbed to a record high of –CA$4.14bn in March as exports with the US shrank for the fifth consecutive month.
GBP/AUD Exchange Rate Rallies Following Gloomy RBA Employment Forecasts
After sinking to a new six-week low late on Thursday, the Pound Australian Dollar (GBP/AUD) exchange rate rebounded earlier this morning following the publication of the Reserve Bank of Australia’s (RBA) quarterly statement.
The key take away from the statement was the bank’s forecast that employment growth is likely to become significantly slower over the next few years, something which may delay the RBA’s next rate hike.
GBP/NZD Exchange Rate Slumps amid Renewed Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped over half a cent on Thursday as the weakness in the US Dollar (USD) exchange rate helped to reignite market risk appetite, providing a much needed lift for the ‘Kiwi’ (NZD).