Pound (GBP) Sinks amid Dismal PMI Readings
Shockingly poor private sector indexes blighted the Pound (GBP) yesterday, pushing it down against its major peers.
Both the manufacturing and service sectors contracted in August, which sparked further recession anxieties.
August’s distributive trades data from the Confederation of British Industry (CBI) may weaken Sterling today, if they drop as sharply as forecast.
Euro (EUR) Weakens as Service Sector Slows
Following the release of the latest Eurozone private sector indexes, the Euro (EUR) weakened against most peers yesterday.
Activity in the bloc’s service sector slowed beyond expectations, but inflationary pressures remained. As such, bets on a further hike from the European Central Bank (ECB) served to cushion EUR against sharper losses.
Due to a light data calendar, the Euro may trade without much direction during today’s session.
US Dollar (USD) Wavers amid Signs of Economic Slowdown
Furthermore, the market mood improved over the course of the session, which capped the safe-haven ‘Greenback’ against some peers.
Amid forecasts of a sharp drop in durable goods orders and an uptick in initial jobless claims, the US Dollar may struggle to attract support today.
Canadian Dollar (CAD) Undermined by Oil Price Slide
Oil prices are likely to be the main driver of movement for CAD today, due to a lack of impactful economic data. If oil continues to weaken, the ‘Loonie’ could fall further.
Australian Dollar (AUD) Spikes on Brief Cheery Trade
The risk-sensitive Australian Dollar (AUD) spiked overnight amid brief patches of upbeat trade. However, this morning it relinquished its gains.
New Zealand Dollar (NZD) Weakens amid Wavering Risk Appetite
The New Zealand Dollar (NZD) weakened during overnight trade, due to the mixed levels of risk appetite.