US Dollar (USD) Slides as Services PMI Disappoints
Continued tailwinds following Friday’s strong jobs data saw the US Dollar (USD) rise through the first part of yesterday’s session.
In the afternoon, however, a disappointing ISM services PMI saw USD drop. Service sector activity ground to a near halt in May, rather than accelerating as expected.
Turning to today’s session, forecasters expect the latest US economic optimism index to show a decline in morale. This could dent USD.
Pound (GBP) Weakens as Service Sector Slows
The Pound (GBP) softened on Monday, with a marginal upward revision to the UK’s services PMI failing to provide Sterling with support.
The finalised survey results pointed to a slowdown in the country’s vital services sector, which may have put some pressure on GBP.
Today, market-moving UK data is thin on the ground. Therefore, we could see the Pound trade without a clear direction.
Euro (EUR) Fluctuates amid Mixed Data
The Euro (EUR) traded in a wide range yesterday as investors responded to mixed Eurozone data. A strong trade surplus from Germany was offset by weaker-than-forecast PMIs and a sharp contraction in producer price inflation.
Adding to the unpredictable movement, a drop in the US Dollar lent EUR support in the afternoon, on account of the currencies’ negative correlation.
Looking ahead, could a modest recovery in Eurozone retail sales see the single currency tick higher this morning?
Canadian Dollar (CAD) Undermined by USD Weakness
The Canadian Dollar (CAD) initially ticked higher yesterday as rising oil prices lifted the commodity-linked ‘Loonie’. However, CAD’s positive correlation to USD saw the currency stumble in the afternoon.
This morning, a steep decline in oil prices could put pressure on the Canadian Dollar. Later on, will positive PMI results see the currency climb?
Australian Dollar (AUD) Leaps following RBA Rate Rise
The Australian Dollar (AUD) jumped higher overnight after the Reserve Bank of Australia (RBA) delivered another surprise interest rate hike.
New Zealand Dollar (NZD) Enjoys AUD Correlation
The New Zealand Dollar (NZD) firmed during last night’s trade, with the ‘Kiwi’ enjoying its positive correlation to the ‘Aussie’.