Pound (GBP) Slides following Services PMI Miss
The Pound (GBP) plunged yesterday after the UK’s flash PMIs revealed a sharp slowdown in service-sector growth.
The services PMI missed forecasts of 57, instead dropping from 58.9 to 51.8. As the service sector makes up around 80% of UK GDP, this result was particularly troubling.
Today, UK politics could drive most movement in the Pound. Sue Gray’s ‘partygate’ report is due to be published. Could Boris Johnson face a no confidence vote this week?
Euro (EUR) Continues to Climb on ECB’s Hawkish Shift
The Euro (EUR) extended Monday’s upside yesterday as markets continue to price in rate hikes from the European Central Bank (ECB).
ECB President Christine Lagarde reiterated the bank’s view that there will likely be rate rises in July and September. Lagarde also sounded confident that the ECB was acting appropriately and on time, while staying mindful of potential risks.
This morning, German consumer confidence printed as forecast, remaining near a record low. This could weigh on EUR.
US Dollar (USD) Wavers amid Mixed Market Mood
The US Dollar (USD) was mixed yesterday, wobbling in different directions against its key rivals.
The uncertain movement came amid a tepid market mood and fairly lacklustre PMI surveys.
Today, US durable goods orders are the first major release, with an expected rise potentially boosting USD. Later in the evening, the Federal Open Market Committee (FOMC) meeting minutes could also affect the ‘Greenback’.
Canadian Dollar (CAD) Dips on Falling Bond Yields
The Canadian Dollar (CAD) fell yesterday as Canadian government bond yields slipped, dragging the ‘Loonie’ down with them.
With no Canadian economic data due out today, oil prices could drive most movement in the crude-linked currency.
Australian Dollar (AUD) Rallies on Hawkish RBA Comments
The Australian Dollar (AUD) initially slipped overnight, but quickly rebounded following hawkish comments from Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis. Ellis signalled that more rate rises are on the way.
New Zealand Dollar (NZD) Jumps as RBNZ Hikes Rates
The New Zealand Dollar (NZD) surged to multi-week highs last night following the Reserve Bank of New Zealand’s (RBNZ) rate decision. The RBNZ enacted a 50-bps rate rise, as expected, but surprised markets by signalling an even more aggressive approach to interest rates going forward.