Pound (GBP) Slips Again amid Service Sector Contraction
The Pound (GBP) rounded off a bruising week with further losses on Friday, as the UK’s services PMI came in worse than expected.
The latest survey pointed to a deepening contraction in service sector activity this month, stoking recession fears and adding to expectations that the Bank of England (BoE) has finished raising interest rates.
Turning to today, the Confederation of British Industry’s (CBI) distributive trades survey could dent GBP. Signs of ongoing weakness in the UK’s retail sector could compound worries about the country’s economic health.
Euro (EUR) Wavers following PMI Surveys
The Euro (EUR) faced choppy trade last Friday, fluctuating in a wide range against its peers, following the release of the latest PMI surveys.
Manufacturing activity weakened even more than expected, while the service sector score came in above forecasts – although it still pointed to a contraction in activity.
An expected downtick in German business morale could dent EUR this morning. Later in the afternoon, a speech from European Central Bank (ECB) President Christine Lagarde may influence the common currency.
US Dollar (USD) Fluctuates as Market Mood Shifts
The US Dollar (USD) also traded without a clear trajectory on Friday as a changing market mood led to some volatility in the safe-haven ‘Greenback’.
Adding to USD’s uncertain movement in the afternoon, the US PMIs printed mixed results. Manufacturing beat expectations while service sector activity disappointed.
Risk appetite could determine the US Dollar’s movement through today’s session. Tonight, could a speech from Federal Reserve hawk Neel Kashkari lend USD support?
Canadian Dollar (CAD) Trades in Tandem with Oil
The Canadian Dollar (CAD) initially rose on Friday thanks to an uptick in oil prices. However, CAD pulled back through the second part of the session as oil prices dipped and Canadian retail sales missed forecasts.
With CAD data in short supply today, oil price dynamics may continue to drive the ‘Loonie’.
Australian Dollar (AUD) Slips despite Risk-On Trade
The Australian Dollar (AUD) dropped during last night’s session, despite an upbeat market mood, as weaker commodities prices dented the resource-linked currency.
New Zealand Dollar (NZD) Weakens as Commodities Decline
The New Zealand Dollar (NZD) also stumbled overnight amid the pullback in the commodities markets.