Pound (GBP) Firms as Covid Sentiment Remains Upbeat
The Pound (GBP) firmed against many of its major rivals yesterday, as GBP investors remained upbeat about the UK’s Covid outlook.
However, a lack of UK data meant that Sterling’s upside was fairly limited.
The UK’s finalised services PMI is out this morning. If it prints below or above the preliminary estimates, this could dent or support Sterling, respectively.
Euro (EUR) Muted amid Absence of Data
The Euro (EUR) was subdued through yesterday’s session, as an absence of notable data left the single currency without much support.
In addition, the Euro may have been weighed on somewhat by its negative correlation to the US Dollar (USD) after the US factory orders printed above predictions.
The final services PMI figures this morning are expected to show improvements in both Germany and the Eurozone. Could the PMIs beat forecasts, as the manufacturing PMIs did on Monday?
US Dollar (USD) Wavers amid Risk-On Mood
The US Dollar (USD) fluctuated yesterday, initially dipping sharply as a risk-on market mood sapped demand for the safe-haven currency.
In the afternoon, the ‘Greenback’ regained some losses against many of its peers thanks to a larger-than-expected growth in US factory orders.
The latest ADP employment change figures and ISM services PMI could support the US Dollar later today, as both are forecast to show improvements.
Canadian Dollar (CAD) Dented by Dip in Oil Prices
The Canadian Dollar (CAD) dipped yesterday, as the commodity-linked ‘Loonie’ was dragged down by a slump in oil prices amid concerns over rising global Covid cases and the potential for new lockdown restrictions.
In the absence of any notable data from Canada today, oil prices may remain the key driver of movement in CAD.
Australian Dollar (AUD) Firms on Chinese PMIs
The Australian Dollar (AUD) trended higher overnight, boosted by China’s better-than-expected services and composite PMIs.
New Zealand Dollar (NZD) Climbs on Upbeat Employment Data
The New Zealand Dollar (NZD) gained in overnight trade after New Zealand’s latest employment data beat forecasts, cheering NZD investors.