Pound (GBP) Stumbles as PMI Disappoints
The Pound (GBP) fell against most of its rivals yesterday after UK private-sector growth unexpectedly slowed to an 11-month low.
The UK’s flash composite PMI edged lower, rather than improving, as Omicron disrupted the UK’s economic recovery.
The latest Confederation of British Industry (CBI) data could impact the Pound today. However, GBP investors may be more interested in UK politics, with new ‘partygate’ revelations preceding the findings of Sue Gray’s official inquiry.
Euro (EUR) Firms amid Gloomy Market Mood
The Euro (EUR) climbed against the majority of its peers yesterday, despite the Eurozone’s composite PMI also printing at an 11-month low.
Germany’s PMI was surprisingly strong, which may have helped the Euro, while a risk-off mood also benefitted the safe-haven currency.
The latest Ifo business climate indicator for Germany might influence EUR today. Could it beat forecasts, as the country’s PMI did yesterday?
US Dollar (USD) Strengthens as Investor Anxiety Grows
The US Dollar (USD) surged higher yesterday as geopolitical tensions and economic headwinds triggered a flight to safe-haven currencies, such as the ‘Greenback’.
NATO reinforced its eastern borders as a Russian invasion of Ukraine looks increasingly likely. In addition, poor economic data and Federal Reserve rate hike concerns also weighed on markets.
Risk appetite could continue to drive movement in the US Dollar today. The latest CB consumer confidence report may also have an impact on USD exchange rates.
Canadian Dollar (CAD) Dragged Down by Falling Oil Prices
The commodity-linked Canadian Dollar (CAD) slipped during yesterday’s session as a fall in oil prices put pressure on the ‘Loonie’.
With no Canadian data due out today, movements in the oil market could continue to influence the Canadian Dollar.
Australian Dollar (AUD) Loses CPI Gains in Risk-Off Trade
The Australian Dollar (AUD) spiked overnight as Australia’s CPI beat forecasts. However, the prevailing bearish market mood dragged the risk-sensitive ‘Aussie’ back down to trade sideways overall.
New Zealand Dollar (NZD) Falls amid Jittery Market Mood
The New Zealand Dollar (NZD) ticked lower in overnight trade as markets remained skittish over the Ukraine crisis and the Federal Reserve policy meeting tomorrow.