Pound (GBP) Slips on BoE’s Brexit Warning to Banks
The Pound (GBP) was on the back foot yesterday, with market concerns over Brexit resurfacing following the Bank of England’s (BoE) warning to banks.
Reports emerged that in a conference call earlier in the week BoE governor Andrews Bailey told banks they need to step up their preparations for a no-deal Brexit.
Coming up this morning, the publication of the UK’s construction PMI may offer some modest support to the Pound if construction activity improved in line with expectations last month.
Euro (EUR) Jumps Ahead of ECB Policy Announcement
The Euro (EUR) rallied on Wednesday, kicked off by the Eurozone’s upwardly revised services PMI figures.
Further gains came as EUR investors awaited the conclusion of the European Central Bank’s (ECB) latest policy meeting, with the single currency rising on the expectations the bank will announce an expansion to its PEPP bond buying programme.
However, ahead of this afternoon’s ECB policy announcement, the Euro could wobble as the Eurozone is expected to report a record drop in retail sales in April.
US Dollar (USD) Stabilises on Better-than-Expected Data
The US Dollar (USD) enjoyed a modest rebound yesterday as a less tumultuous day of protests allowed the ‘Greenback’ to strengthen on the back of upbeat domestic data.
USD investors cheered as the ADP employment figures reported only 2.7 million Americans lost their jobs last month against forecasts of a much larger rise of 9 million. Investors also welcomed a stronger-than-expected ISM non-manufacturing PMI, which reported the contraction in the US service sector eased in May.
Coming up we have the release of last week’s initial jobless claims. Will a notable fall in unemployment claims help to extend the US Dollar’s rally?
Canadian Dollar (CAD) Strengthens as BoC Rejects Negative Interest Rates
The Canadian Dollar (CAD) ticked higher on Wednesday following the Bank of Canada’s (BoC) latest policy meeting as the bank kept interest rates on hold and stressed that negative rates are not under active consideration.
Australian Dollar (AUD) Dips on Renewed US-China Tensions
The Australian Dollar (AUD) trended lower overnight on Wednesday, after market sentiment began to sour in response to rising tensions between the US and China.
New Zealand Dollar (NZD) Struggles in Risk-Off Trade
The New Zealand Dollar (NZD) also found itself running out of momentum in overnight trade as the US suspended passenger flights from four Chinese airlines to and from the country.