US Dollar (USD) Rallies amid Risk-Off Mood
The US Dollar (USD) surged yesterday as a souring market mood boosted demand for the safe-haven currency.
Weak economic data from China rattled global investors. Meanwhile, a spike in oil prices raised fears that inflation could climb even higher.
The latest ISM services PMI is in the spotlight today. Economists expect a modest slowdown, although service-sector activity is still forecast to have grown in August. Could a resilient reading see USD climb on fresh Fed bets?
Pound (GBP) Volatile following Mixed PMI
The Pound (GBP) traded in a wide range yesterday as mixed factors played on the UK currency.
While an upward revision to the British services PMI may have lent GBP support, the reading still showed a contraction in activity. Meanwhile, a gloomy mood weighed on the increasingly risk-sensitive Pound.
Turning to today, UK data is thin on the ground. Lingering fears over the British economy’s bleak outlook could maintain pressure on Sterling.
Euro (EUR) Falls following Disappointing Data
The Euro (EUR) faced selling pressure yesterday after the Eurozone’s final services PMI was revised lower.
Another decline in PPI added to the selling pressure on EUR. With easing producer prices, market reined in bets on more interest rate hikes from the European Central Bank (ECB).
This morning, new data showed that German factory orders slumped a startling 11.7% in July. This could pressure EUR today. Attention now turns to the Eurozone’s July retail sales data. Could another contraction in sales dent EUR?
Canadian Dollar (CAD) Jumps as Oil Prices Spike
The commodity-linked Canadian Dollar (CAD) leapt higher yesterday after Saudi Arabia and Russia extended cuts to oil output, sending crude prices soaring to a ten-month high.
This afternoon, the Bank of Canada (BoC) meets to set interest rates. Could a dovish decision see CAD trim yesterday’s gains?
Australian Dollar (AUD) Ticks Higher as GDP Beats Forecasts
The Australian Dollar (AUD) managed to edge higher overnight, as the ‘Aussie’ was supported by upbeat economic data.
Australian GDP beat forecasts in the second quarter, printing at 0.4% versus 0.3%. Meanwhile, first-quarter growth was revised up from 0.2% to 0.4%.
New Zealand Dollar (NZD) Wobbles amid Tepid Risk Appetite
The New Zealand Dollar (NZD) wavered during overnight trade as a mixed market mood left the risk-sensitive ‘Kiwi’ struggling to find a clear direction.