Pound Continues Recovery as Military Fuel Tanker Drivers Deployed

Pound (GBP) Continues Recovery as Army Drivers Deliver Fuel

The Pound (GBP) firmed yesterday as the UK’s fuel crisis continued to improve, with the UK government deploying military drivers to support the hardest-hit areas.

However, Sterling’s gains were capped amid warnings that it could take up to ten days for forecourts to build stocks back up to normal levels.

Turning to today, the UK’s final services PMI is forecast to show a slight drop in activity. Could the report beat expectations as the manufacturing PMI did last week?

Euro (EUR) Dips amid Lack of Data

The Euro (EUR) softened through yesterday’s session, as a lack of Eurozone data left the single currency rudderless.

Meanwhile, the ongoing European energy crisis continued to worry EUR investors as it has done in recent weeks, tipping the single currency to the downside.

The finalised services PMIs for Germany and the Eurozone are also out today. Any unexpected results could trigger movement in the Euro.

US Dollar (USD) Dented by Congressional Deadlock

The US Dollar (USD) weakened yesterday amid a Republican-Democrat standoff over the US federal debt limit.

As the US inches closer to defaulting on its debt, Congress is deadlocked over how to raise the debt ceiling, causing nervousness among USD investors.

This may continue to affect the US Dollar today, but will the ISM services PMI and economic optimism report lend USD any support this afternoon?

Canadian Dollar (CAD) Firms as Oil Rallies

The Canadian Dollar (CAD) strengthened yesterday as oil prices soared. WTI crude jumped from $76 to $78 a barrel, boosting the oil-sensitive ‘Loonie’.

Looking at today’s session, Canada’s trade surplus is expected to narrow from CA$0.78bn to C$0.43bn, which may dent the Canadian Dollar. However, if oil prices continue to climb, then CAD could stay strong.

Australian Dollar (AUD) Dips despite Positive Data

The Australian Dollar (AUD) fell overnight, despite Australia’s trade surplus hitting an all-time high and cautious optimism from the Reserve Bank of Australia (RBA) following its latest interest rate decision.

The downside came as market sentiment soured, with the China Evergrande crisis and the US debt-limit deadlock rattling markets.

New Zealand Dollar (NZD) Softens amid Risk-Off Trade

The New Zealand Dollar (NZD) ticked lower overnight as a bearish market mood dampened demand for the safe-haven ‘Kiwi’.