Pound (GBP) Stable on Upbeat Industrial Data
The Pound (GBP) held its ground through yesterday’s session after the Confederation of British Industry (CBI) reported UK factories enjoyed their fastest growth since 2018.
This helped offset concerns over the spread of the Indian variant of coronavirus in the UK, which may have otherwise dragged Sterling lower.
The UK’s latest retail sales figures helped the Pound get off so a solid start this morning following a robust rise in sales growth last month.
These gains could be reinforced by the upcoming PMI releases if activity in the UK’s private sector continued to improve this month after striking a seven-year high in April.
Euro (EUR) Firms on USD Weakness
The Euro (EUR) recorded modest gains yesterday, rising as the US Dollar (USD) weakened as a result of the negative correlation between the pairing.
The improving mood in the Eurozone is aiding the single currency’s ascent, with growth prospects bolstered by the EU’s accelerating vaccination programme and the reopening of more countries.
The Eurozone’s own PMI figures will be in the spotlight today, with the Euro poised to accelerate if the manufacturing and services sectors expanded in line with expectations this month.
US Dollar (USD) Undermined by Upbeat Market Mood
The US Dollar (USD) struggled on Thursday as an improving market mood dampened the appeal of the safe-haven currency.
These losses were capped somewhat by the publication of last week’s US jobless claims, as new claims fell further.
Looking ahead, USD investors are likely to focus on any hints that the Federal Reserve may be considering tapering its bond purchases in the months to come.
Canadian Dollar (CAD) Dented by Weaker Oil Prices
The Canadian Dollar (CAD) ticked lower on Thursday as the oil sensitive ‘Loonie’ came under pressure amidst the continued softening of crude prices.
Coming up, the publication of Canada’s latest retail sales figures could offer some support to the ‘Loonie’ later this afternoon if sales growth remained robust in March following a sharp spike in February.
Australian Dollar (AUD) Stumbles Despite Upbeat Retail Sales
After rallying through much of Thursday the Australian Dollar (AUD) began to stumble again early this morning. AUD investors appeared unimpressed by Australia’s stronger-than-expected retail sales figures.
New Zealand Dollar (NZD) Weakens amid USD Rebound
The New Zealand Dollar (NZD) also weakened overnight on Thursday. A rebound in the US Dollar appeared to be the main source of pressure on the ‘Kiwi’.