Pound (GBP) Weakens as PMIs Dent BoE Bets
The Pound (GBP) stumbled out of the gate this week after the UK’s latest PMI results revealed that the British economy was close to stalling this month.
Alongside slowing private sector activity, the PMIs revealed easing inflationary pressures. This added to the recent pullback in Bank of England (BoE) interest rate rise bets.
Turning to today’s session, the latest business confidence and industrial trends orders reports from the Confederation of British Industry (CBI) are due out. Could more disappointing data dent the Pound?
Euro (EUR) Slides following Dire PMIs
The Eurozone’s PMIs also missed expectations yesterday, sending the Euro (EUR) sharply lower.
Manufacturing activity in the bloc contracted at its fastest pace in three years, while service sector activity slowed to a six-month low.
This morning, Germany’s latest business climate index could hurt EUR, if it weakens as expected.
US Dollar (USD) Shifts amid Mixed Trade
The US Dollar (USD) faced mixed movement yesterday, rising against its weaker peers but struggling to gain ground elsewhere amid fluctuating Treasury bond yields and a mixed market mood.
The latest US PMIs in the afternoon added to USD’s mixed movement. While the service sector score missed forecasts, the manufacturing score came in above market expectations.
Looking ahead, could an anticipated rise in US consumer confidence boost the ‘Greenback’ this afternoon?
Canadian Dollar (CAD) Climbs as Oil Prices Rise
The commodity-linked Canadian Dollar (CAD) marched higher during yesterday’s trade as oil prices strengthened. Signs of a tighter supply and hopes of economic stimulus measures from China boosted the value of crude.
In the absence of any notable Canadian data today, oil prices could continue driving CAD. Will ongoing strength in the oil market see the ‘Loonie’ move even higher?
Australian Dollar (AUD) Rises on Chinese Stimulus Hopes
The Australian Dollar (AUD) gained ground overnight as hopes of more economic stimulus measures from China cheered markets, thereby boosting the China-proxy ‘Aussie’ Dollar.
New Zealand Dollar (NZD) Firms amid Risk-On Mood
The risk-sensitive New Zealand Dollar (NZD) also moved higher last night, as a cheery market mood lifted the ‘Kiwi’.