Pound (GBP) Rangebound despite PMI Slowdown
The Pound (GBP) managed to hold its ground on Friday, despite the UK’s PMIs revealing that composite business activity slowed to a four-month low.
Both the manufacturing and services flash PMIs printed below expectations, with the latter dropping sharply from 62.4 to 57.8. The Pound initially dipped on these PMIs but then bounced back, trading sideways overall.
A small but better-than-expected recovery in retail sales of 0.5% may have helped buoy Sterling.
With no UK data due today, the UK’s Covid situation could affect the Pound. Will Covid cases rise or have we seen the peak of the UK’s third wave?
Euro (EUR) Subdued despite Stellar PMIs
The Euro (EUR) struggled at the end of last week, despite the composite PMIs from Germany and the Eurozone both hitting record highs, as rising Covid cases in Europe continue to worry EUR investors.
Despite overall business activity rising at its strongest pace since records began in both Germany and the Eurozone, the single currency failed to make any meaningful gains.
Germany’s latest business climate indicator may not give the Euro much support this morning, as it printed below expectations. This could leave EUR vulnerable to losses as the day goes on.
US Dollar (USD) Wavers on Mixed PMIs
The US Dollar (USD) fluctuated on Friday, trading sideways overall, as the latest Markit PMIs revealed mixed results.
While the manufacturing PMI beat predictions to hit a new record high, the services PMI showed an unexpected drop. In response, the ‘Greenback’ wavered in a narrow range, struggling to find any clear directional bias.
With no major market-moving data from the US today, the safe-haven US Dollar may be driven by risk sentiment. Will China’s latest business crackdown, which is currently unsettling stock markets, fuel risk aversion?
Canadian Dollar (CAD) Steady on Stable Oil Prices
The Canadian Dollar (CAD) was rangebound through Friday’s session, with steady oil prices keeping the commodity-linked ‘Loonie’ in a narrow range.
This morning, oil prices have dipped by $1. Will they recover and buoy CAD as the day goes on?
Australian Dollar (AUD) Slips on Risk-Off Sentiment
The Australian Dollar (AUD) trended lower in overnight trade, as a souring market mood weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Undermined by Bearish Market Mood
The New Zealand Dollar (NZD) stumbled overnight, despite exports jumping by 17.1% to hit a record high of NZ$5.95bn, as a bearish market mood undermined the currency.