Pound (GBP) Underpinned by BoE Bets
Persistent bets on a 25bps rate hike from the Bank of England (BoE) in May propped up the Pound (GBP) on Thursday.
However, Sterling’s gains were capped by expectations that the May hike could be the central bank’s last.
A larger-than-expected fall in UK retail sales last month is also placing pressure on GBP today. Could a strong performance in the UK services PMI help to limit Sterling’s downturn?
Euro (EUR) Edges Higher amid Mixed ECB Signals
The Euro (EUR) trended higher over the course of Thursday. A risk-off mood lifted the single currency, as well as bets on further European Central Bank (ECB) rate hikes.
Conversely, mixed signals from the latest ECB minutes limited gains for EUR amid evidence of a split amongst policymakers.
April’s PMIs for the Eurozone may buoy the Euro today. Manufacturing output is set to rise alongside a still-positive reading for the bloc’s services sector.
US Dollar (USD) Loses Ground after Downbeat Data
The US Dollar (USD) started Thursday on strong footing amid a cautious market mood and Federal Reserve rate hike bets.
Disappointing data releases saw the currency shed its gains as the day went on, though. Jobless claims rose above forecasts, whilst indicators of the health of the US manufacturing sector tumbled.
Evidence of poor performance in the US private sector could deepen losses for the US Dollar today if April’s PMIs slip as forecast.
Canadian Dollar (CAD) Drops as Oil Prices Tumble
The commodity-linked Canadian Dollar (CAD) was pulled lower by a drop in crude oil prices yesterday.
The ‘Loonie’ could fall further if February’s retail sales slump as forecast this afternoon. Additional weakness in oil prices may also keep pressure on CAD.
Australian Dollar (AUD) Slides on Slowdown Fears
The Australian Dollar (AUD) stumbled overnight on Thursday, with fears that global growth will be stifled by hawkish monetary policy weighing on the ‘Aussie’.
New Zealand Dollar (NZD) Undermined by Bearish Trade
The New Zealand Dollar (NZD) also weakened overnight as an increasingly pessimistic outlook for global growth sapped the appeal of the risk-sensitive ‘Kiwi’.