Pound (GBP) Crawls Upwards on Mixed Data
The Pound (GBP) experienced some turbulence yesterday, but managed to trend upwards overall, as UK public borrowing for this financial year came in at £108.1bn – £43bn less than expected.
This positive news was offset by data from the Confederation of British Industry, which showed that business optimism for the fourth quarter of this year slumped.
Sterling is struggling this morning as UK retail sales unexpectedly fell for a record-breaking fifth consecutive month, adding to concerns that the UK’s economic recovery is stalling.
Euro (EUR) Subdued as Consumer Confidence Falls
The Euro (EUR) was muted through yesterday’s trade as a lack of data for most of the session left EUR investors without much impetus.
Consumer confidence figures in the afternoon caused little movement, as morale among Eurozone consumers fell but by less than expected.
Turning to today, the latest flash PMIs for the Eurozone showed that manufacturing unexpectedly improved but services fell by more than forecast, which may limit EUR’s movement.
US Dollar (USD) Rallies as Market Sentiment Sours
The US Dollar (USD) initially traded sideways yesterday, as a mixed market mood kept the safe-haven ‘Greenback’ in a narrow range.
However, sentiment soured in the afternoon, allowing the US Dollar to jump in the last hour of the European session.
Looking ahead, the US services PMI is expected to edge up while manufacturing is forecast to dip slightly. But could the US data print better than expected, as it has done in recent weeks?
Canadian Dollar (CAD) Slides on Poor Employment Figures
The Canadian Dollar (CAD) tumbled at the end of yesterday’s session as oil prices fell and Canada’s employment change report printed well below expectations.
A forecast recovery in retail sales later today may help to bolster CAD exchange rates, while crude prices will likely continue to influence the oil-sensitive ‘Loonie’.
Australian Dollar (AUD) Gains on Positive PMIs
The Australian Dollar (AUD) ticked higher overnight after Australia’s PMIs beat market forecasts.
New Zealand Dollar (NZD) Firms amid Risk-On Mood
The New Zealand Dollar (NZD) also trended higher in overnight trade, with the risk-sensitive ‘Kiwi’ buoyed by a bullish market mood.