Pound (GBP) Flat on Improved Construction PMI
After an initial slump, the Pound (GBP) was able to bounce back yesterday on the back of the UK’s latest construction PMI.
This revealed that the UK’s construction sectored continued to contract in January, but it did so at its slowest pace since May, with the index jumping more than expected last month.
Coming up we may see Sterling supported by the final release of the UK’s services PMI if it confirms a strong rebound in service sector activity last month.
Euro (EUR) Subdued Amid Lull in Data
The Euro (EUR) traded in a narrow range through yesterday’s session as a lull in domestic data left the single currency directionless.
Looking ahead, the Euro could find some direction later this morning as the latest Eurozone PMI figures are expected to confirm a slowing of growth in the service sector last month.
Coupled with the forecast that the Eurozone’s retail sales figures will report a sizable slump in sales growth in December, this could send the Euro lower during today’s European session.
US Dollar (USD) Firms on Upbeat US Factory Figures
The US Dollar (USD) trended higher on Tuesday as markets cheered the latest US factory order figures.
These indicated a strong pick-up in US factory activity in December, with order growth rocketing from –1.2% to 1.8%, the highest reading in over a year.
On the docket for USD investors today is the latest ISM non-manufacturing PMI. Will another solid performance in the US service sector last month strengthen the US Dollar later this afternoon?
Canadian Dollar (CAD) Stable Following Rebound in Oil Prices
The Canadian Dollar (CAD) held its ground through Tuesday’s trading session as a solid rebound in oil prices lent some support to the commodity-linked currency.
Australian Dollar (AUD) Dented by Dovish RBA Comments
The Australian Dollar (AUD) edged lower against most of its peers overnight on Tuesday after Reserve Bank of Australia (RBA) Governor Philip Lowe reignited speculation about future monetary easing.
In contrast with the relatively upbeat outlook from the RBA in its latest policy statement, Lowe suggested there may be a strong case for cutting rates if unemployment moves higher and inflation stagnates.
New Zealand Dollar (NZD) Fluctuates Following Mixed Employment Figures
The New Zealand Dollar (NZD) was met by some volatility overnight in response to New Zealand’s latest jobs report.
This revealed that while the unemployment rate fell from 4.2% to 4% in the last quarter of 2019 this was mostly due to a shrinking workforce, as employment growth stalled over the same period.