Pound (GBP) Muted amid Lack of Data
The Pound (GBP) lacked direction yesterday, as a lack of economic releases left Sterling vulnerable to market dynamics.
Tentative rate hike bets may have served to cushion GBP, however. Investors are keenly awaiting Wednesday’s inflation print to judge the course of further hikes.
This morning, private sector PMI flashes are due to print. The indexes for May could serve to boost Sterling, as they may reflect a resilient economy.
Euro (EUR) Supported by Hawkish ECB
The Euro (EUR) saw some support from hawkish remarks from European Central Bank (ECB) policymakers today.
ECB President Christine Lagarde remarked over the weekend that they were committed to curtailing inflation. However, anxieties over the US debt ceiling prevented EUR from capitalising on these gains.
The latest private sector indexes for the Eurozone are due to print this morning. Similarly to the UK indexes, indications of a resilient economy could strengthen EUR.
US Dollar (USD) Wavers as Debt Ceiling Crisis Continues
The US Dollar (USD) saw mixed fortunes yesterday, as negotiations over the US debt ceiling continued to dampen the mood.
While recent talks have been ‘productive’, the 1st of June deadline is fast approaching. If they fail to reach a solution, the US economy could be plunged into crisis. As such, this anxiety kept a firm lid on USD demand.
Manufacturing and service sector PMI flashes for May are due to print this afternoon. These indexes may dent USD, as they are currently forecast to reflect a stall in manufacturing and slowdown in services.
Canadian Dollar (CAD) Quiet amid Federal Holiday
The Canadian Dollar (CAD) saw little movement today, as markets were closed in celebration of Victoria Day.
This afternoon, the ‘Loonie’ could see movement following the latest PPI data. Economists forecast a further decrease in PPI, which could weaken CAD.
Australian Dollar (AUD) Muted amid Mixed PMI Releases
The Australian Dollar (AUD) saw tepid trade overnight, as the latest private sector indexes painted a mixed picture of the economy.
New Zealand Dollar (NZD) Underpinned by RBNZ Rate Hike Bets
The risk-sensitive New Zealand Dollar (NZD) saw some support last night, as investors await tonight’s interest rate decision from the Reserve Bank of New Zealand (RBNZ).