Daily Currency News: Pound Slumps as Abysmal PMI Figures Show UK Construction Sector Suffers Worst Month on Record

Pound (GBP) Retreats on Dire Construction PMI

The Pound (GBP) was on the defensive through yesterday’s trading session as the UK’s latest construction PMI made for grim reading.

According to data published by IHS Markit, the UK’s construction sector suffered its worst contraction on record last month as building sites around the country fell silent as part of the coronavirus lockdown.

Alongside sharp slumps in the UK’s services and manufacturing sectors, this likely points to an unprecedented drop in GDP in the second quarter.

Meanwhile, the Pound looks to be on the rebound this morning following hints the Bank of England (BoE) could expand its stimulus programme cheered GBP investors.

Euro (EUR) Dented by Weak Data

The Euro (EUR) also struggled on Wednesday as the appeal of the single currency was dented by weaker-than-expected German factory orders and Eurozone retail sales in March.

Further weighing on EUR exchange rates was the latest economic forecasts from the European Commission, which warned Europe is facing its worst recession since the Great Depression.

Turning to today’s session, the Euro may face additional losses as German industrial production also came in below expectations in March.

US Dollar (USD) Bolstered by Concerns of a Global Recession

The US Dollar (USD) trended higher during yesterday’s session, amidst strong demand for the safe-haven currency.

This appeared to be driven by the weakness of some of its peers as well as a slight souring of market sentiment amidst uncertainty over the potential size of the global recession markets face in 2020.

Coming up this afternoon, the latest US jobless claims could take the wind out of the US Dollar as analysts predict the US will report another colossal rise in unemployment claims last week.

Canadian Dollar (CAD) Stumbles as Oil Prices Retreat

The Canadian Dollar (CAD) was cast lower on Wednesday, reversing some of the ‘Loonie’s gains from the first half of the week as the recent oil recovery appeared to run out of steam.

Australian Dollar (AUD) Rallies on Record Trade Surplus

The Australian Dollar (AUD) struck higher overnight on Wednesday after a surprise surge in exports resulted in Australia recording its largest trade surplus ever in March.

New Zealand Dollar (NZD) Buoyed by Chinese Trade Figures

The New Zealand Dollar (NZD) also rallied in overnight trade with the commodity-linked currency gaining after China reported a larger than expected trade surplus last month.

Matthew Andrews

Contact Matthew Andrews